Stock market today: Sensex and Nifty dip slightly as US tariff tensions loom

Representational Pic

Indian equity markets began Wednesday's trading session on a flat note, as investor sentiment remained cautious due to weak global cues and recent developments surrounding reciprocal tariffs by the United States.

At the opening bell, the BSE Sensex was recorded at 76,615.29, a decline of 119.60 points or 0.16 per cent. Similarly, the NSE Nifty opened lower by 36.35 points or 0.16 per cent, standing at 23,292.20, as per ANI reports.

Early gainers included Shriram Finance, IndusInd Bank, Apollo Hospitals, Kotak Mahindra Bank, and Axis Bank. In contrast, major laggards in morning trade were Infosys, Maruti Suzuki, Tech Mahindra, Tata Consumer Products, and Cipla.

Technical indicators suggest the market may face short-term resistance. Akshay Chinchalkar, Head of Research at Axis Securities, noted that Tuesday's market movement formed what is referred to as a "hanging man" pattern - typically indicative of slowing upward momentum. "Immediate support lies at 23,207, while the resistance zone is expected between 23,400 and 23,500. Bulls must hold the market above the critical support level of 22,924 to aim for the swing high of 23,870," Chinchalkar explained.

Ajay Bagga, a market and banking expert, stated that Indian indices remain roughly 12 per cent below their record highs witnessed at the end of September. He added that broader market indices have faced an even sharper correction. However, the recent return of foreign portfolio investors (FPIs) as net buyers and continued domestic investment could fuel a robust rally. "Strong FPI inflows in the cash segment gave a lift to all indices, and the Indian Rupee has shown signs of strengthening," Bagga said.

Bagga further added that market participants are closely tracking earnings season and whether FPIs will continue their buying trend. "The markets are waiting for strong cues, especially regarding earnings and potential US-China trade progress," he told ANI.

The recent announcement by the US Commerce Department to launch investigations into pharmaceutical and semiconductor imports - potentially leading to more tariffs - has created further uncertainty. Officials also confirmed that certain tariffs, including a 20 per cent ‘reciprocal' tax (previously reduced by former President Trump to 10 per cent), as well as levies on cars and metals, would not be immediately lifted.

(With inputs from ANI)