Indian markets opened weak on Monday as the Sensex plunged below 75,000 and Nifty dropped 188 points, impacted by global uncertainties, FII outflows, and concerns over US trade policies.
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Indian equity benchmark indices Sensex and Nifty witnessed a sharp decline in early trade on Monday, impacted by weak trends in US markets, sustained selling by Foreign Institutional Investors (FIIs), and concerns over global trade tensions, particularly regarding US tariffs.
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As per PTI reports, the 30-share BSE Sensex plunged 567.62 points, falling below the crucial 75,000 mark to settle at 74,743.44. Similarly, the NSE Nifty dropped 188.4 points, trading at 22,607.50 in the opening session.
According to PTI, stocks from the Sensex pack that recorded the most significant losses included HCL Tech, IndusInd Bank, Zomato, Tech Mahindra, Tata Consultancy Services, ICICI Bank, HDFC Bank, and Power Grid. However, Maruti Suzuki and Mahindra & Mahindra emerged as the only gainers in the early session.
The market downturn follows continued heavy outflows by foreign investors. On Friday, FIIs offloaded equities worth Rs 3,449.15 crore, as per exchange data. PTI reports that foreign investors have withdrawn over Rs 23,710 crore from Indian equity markets so far in February, bringing the total outflows beyond Rs 1 lakh crore in 2025. The selling pressure is attributed to growing global trade tensions, especially concerns over the tariff policies of former US President Donald Trump, who is a key contender in the upcoming elections.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, "The market is facing headwinds from relentless FII selling and global uncertainties relating to Trump tariffs. Additionally, the sharp surge in Chinese stocks presents another near-term challenge. In the US, long-term inflation expectations are rising, making it unlikely for the Federal Reserve to implement the expected rate cut."
PTI reports that major Asian markets, including Seoul, Shanghai, and Hong Kong, were trading lower, mirroring the weak sentiment from Wall Street, where US markets closed significantly lower on Friday.
Global oil prices also continued their decline, with the benchmark Brent crude slipping 2.13 per cent to USD 74.43 per barrel, further weighing on investor sentiment.
"As we advance, continued foreign fund outflows and concerns over US President Donald Trump’s tariff stance in his potential second term may keep investors on edge in a holiday-shortened week," said Ameya Ranadive, Chartered Market Technician, CFTe, and Senior Technical Analyst at StoxBox.
On Friday, the Sensex had already logged its fourth consecutive session of decline, losing 424.90 points or 0.56 per cent to close at 75,311.06, while the Nifty fell 117.25 points or 0.51 per cent to settle at 22,795.90.
(With inputs from PTI)
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