Indian equities extended their losing streak for the tenth consecutive trading session, weighed down by weak global sentiments and external market pressures. Investors remained cautious as geopolitical tensions and economic policies influenced global market movements.
Global Market Impact
One of the key factors impacting the market sentiment was the United States’ decision to implement a 25% tariff on imports from Canada and Mexico. Additionally, Chinese goods now face a cumulative 20% duty, following an additional 10% levy imposed by President Donald Trump. These developments have raised concerns about a potential global trade slowdown, leading to risk aversion among investors.
Domestic Market Outlook
Given the weak global cues and lack of strong domestic triggers, analysts predict that Indian equities will remain largely subdued. However, continued buying interest in the broader market may provide some support, particularly in select sectors that remain resilient to external shocks.
Key Market Indicators to Watch
- Global Trends: Watch for any updates on trade negotiations and geopolitical developments that may influence market sentiment.
- FII & DII Activity: Foreign and domestic institutional investor trends will provide insights into market direction.
- Sectoral Movements: Sectors such as IT, pharmaceuticals, and FMCG may exhibit relative strength, while export-heavy industries may face volatility due to global trade tensions.
- Corporate Announcements: Any significant earnings reports, policy updates, or corporate actions may drive stock-specific movements.
Technical View
From a technical standpoint, Nifty and Sensex are approaching key support levels. A breach below these levels may trigger further selling pressure, while a strong rebound could indicate a potential reversal. Traders are advised to watch for breakout levels and momentum indicators before making any significant moves.
Conclusion
With uncertainty prevailing in global markets, Indian equities are likely to experience range-bound movement with a negative bias. Investors are advised to adopt a cautious approach, focus on risk management, and keep a close watch on evolving market developments.