Global Trade Tensions Cause Slump in Indian Equity Markets

Indian equity benchmarks started the new trading week lower, affected by global trade tensions and lacklustre domestic triggers. Notable declines in the BSE Sensex and NSE Nifty 50 reflected weakened investor confidence as global market uncertainties exacerbated by potential US tariffs against European nations continued to loom large.

Indian equity benchmarks faced a challenging start to the week as global trade uncertainties dampened investor appetite. Both the BSE Sensex and NSE Nifty 50 opened on a down note, embodying what analysts have called 'Tariff Tantrums,' as sentiment across international markets soured.

Ajay Bagga, a banking and market expert, highlighted poor global risk sentiment and the absence of strong domestic catalysts as driving market volatility. "Indian markets are unveiling a weak outset amid these global tensions," Bagga remarked, referencing ongoing selling pressure from Foreign Portfolio Investors and mixed corporate earnings.

The spotlight has shifted to the United States, where President Donald Trump has threatened European nations with tariffs, escalating global nerves. Bagga noted that this 'weaponisation of tariffs' highlights fracturing alliances, and weak Chinese economic data only adds to regional unease. Thus, the market lacks a clear direction entering the week.

(With inputs from agencies.)