Indian equities opened lower on Friday, weighed down by renewed global trade tensions after the United States announced a fresh round of steep tariffs on key trading partners.
The S&P BSE Sensex fell 150.77 points to 81,034.81, while the NSE Nifty50 dropped 62.50 points to 24,705.85 in early trade (9:47 am).
Despite the weak opening, Hindustan Unilever Ltd (HUL) emerged as a bright spot, gaining over 4% after posting stronger-than-expected quarterly results.
Market View
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the August derivatives series began on a subdued note after the Nifty fell 3.1% in July.
“Markets will be influenced in the near term by tariff-related news. Since the new US tariff rates take effect from August 7, there’s still a window for negotiations, which could bring these rates down,” he said.
He added that Thursday’s market reaction suggests investors view the 25% US tariff on Indian goods as a short-term headwind that may ease after fresh trade talks this month.
Broader Market Weakness
The broader market remains under pressure, with small-cap stocks showing notable weakness due to high valuations. Foreign institutional investors (FIIs) have been persistent sellers, further weighing on sentiment.
The recent surge in the dollar index to 100 could push FIIs to continue offloading large-cap holdings. Analysts recommend a “wait-and-watch” approach for now.