Indian equity benchmarks opened in negative territory on Wednesday, with the Nifty50 slipping below key psychological levels as investors reacted to weak global cues and persistent concerns over domestic inflation and interest rate uncertainties.
The Nifty50 index opened lower by over 60 points, trading near 19,750 in the early session. Most sectoral indices, particularly banking, IT, and auto, were in the red, signaling a broad-based weakness across the market.
Market experts pointed to continued global volatility as a key factor dragging sentiment. Wall Street closed mixed overnight after U.S. retail sales data came in weaker than expected, raising fresh concerns about consumer demand in the world’s largest economy. Meanwhile, Asian markets were also subdued, with indices in Tokyo and Hong Kong trading lower amid concerns over China’s property market and slowing industrial output.
“There is nervousness across global markets, and India is no exception,” said Rahul Jain, Head of Equities at NXT Wealth. “With earnings season behind us and no major domestic trigger in sight, markets are reacting to global developments and macro headwinds.”
Additionally, oil prices remained volatile, with Brent crude hovering around $84 per barrel, further complicating the outlook for inflation-sensitive sectors.
On the domestic front, investors are awaiting key macroeconomic releases, including India’s GDP growth estimates and industrial production data, expected later this week. The Reserve Bank of India’s recent cautious stance on rate hikes has also added to short-term uncertainty.
Midcap and smallcap indices, which have been outperforming in recent months, saw increased selling pressure as retail investors turned cautious. The India VIX — a measure of market volatility — edged higher by nearly 4%, reflecting increased nervousness among traders.
