Why Did Sensex and Nifty Drop in Early Trading?
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Synopsis
In a turbulent start to the week, the Indian stock markets fell sharply, influenced by global weakness stemming from US-China trade concerns. As geopolitical tensions rise, experts predict increasing volatility and shifts in investor sentiment. The situation underlines the importance of monitoring market dynamics as institutional buying continues despite external pressures.
Key Takeaways
- Indian stock markets opened lower due to global economic pressures.
- Sensex and Nifty both experienced significant declines.
- All sector indices were trading in negative territory.
- Geopolitical tensions are influencing investor sentiment.
- FIIs continue to support the market despite external challenges.
Mumbai, Oct 13 (NationPress) The Indian stock markets commenced the week on a negative note this Monday, reflecting a downturn in Asian markets following a warning from US President Donald Trump regarding “stricter” tariffs on China. The overall cautious sentiment in the global arena impacted domestic equities, resulting in widespread selling across various sectors.
At the start of trading, the Sensex was at 82,278, down by 223 points or 0.27 percent, while the Nifty began at 25,180, declining by 105 points or 0.42 percent.
Experts commenting on the Nifty forecast indicated, “We will limit our upside objective to 25460, as maintained last week. Volatility is anticipated to rise as the week unfolds.”
They further noted, “The nearest support is identified at 25230/15, and we will monitor for a direct fall past 25113 before considering a shift away from upside strategies.”
As the day progressed, selling pressure escalated. By approximately 9:34 am, the Sensex was trading at 82,077.94, down by 422.88 points or 0.51 percent, while the Nifty decreased by 121.85 points or 0.48 percent to 25,163.50.
The broader markets also experienced a downturn, with the Nifty MidCap index and the Nifty SmallCap index falling by 0.5 percent and 0.64 percent, respectively.
All sector indices were in decline, with the Nifty IT index witnessing the most significant drop of 0.9 percent, followed closely by the Nifty Metal index, which fell by 0.69 percent.
Market analysts attributed the declines to escalating geopolitical tensions and uncertainty surrounding US-China trade relations, which have adversely affected global investor sentiment.
In India, however, consistent buying by Foreign Institutional Investors (FIIs) has brought some stability to the market, with purchases totaling Rs 3,289 crores over the past four trading days.
Experts suggested that the uptrend in the market has led to short covering, contributing to market resilience. “Domestic consumption themes unaffected by trade tensions are likely to see accumulation from institutional buyers,” they advised.
Point of View
The current decline in the Indian stock markets highlights the interconnectedness of global economies. While external pressures from geopolitical tensions and trade relations pose challenges, the resilience demonstrated by domestic institutional investors showcases India's commitment to stability. The focus on sectors less impacted by international conflicts may provide avenues for growth amidst uncertainty.
NationPress
13/10/2025
Frequently Asked Questions
What caused the decline in Indian stock markets?
The decline was primarily driven by global weakness, particularly concerns regarding US-China trade relations and warnings of stricter tariffs from US President Donald Trump.
How are the indices performing?
As of the latest updates, the Sensex is down by 422.88 points, trading at 82,077.94, while the Nifty has fallen by 121.85 points to 25,163.50.
What do experts predict for the upcoming week?
Experts anticipate increased volatility, with a cautious outlook on market movements and a focus on domestic consumption themes.
