Sensex, Nifty open lower over US imposing 25 pc tariffs on nations trading with Iran

Mumbai: Following a sharp recovery from lower levels, Indian benchmark indices traded flat with a negative bias on Tuesday amid rising geopolitical tensions and sustained foreign institutional outflows.

As of 9.29 am, Sensex slipped 85 points, or 0.10 per cent to 83,792 and Nifty eased 22 points, or 0.08 per cent to 25,768.

Main broad-cap indices showed slight divergence with benchmark indices, with the Nifty Midcap 100 up 0.11 per cent, while the Nifty Smallcap 100 added 0.38 per cent.

ONGC and SBI were among major gainers on the Nifty. Sectoral indices were trading mixed, with the majority of them in the red. Nifty Media and PSU bank were among the major gainers, up 0.79 per cent and 0.67 per cent.

Immediate support lies at 25,650–25,700 zone, while resistance remained at 25,950–26,000 zone, market watchers said.

Analysts said that US President Donald Trump’s weaponisation of tariffs has affected global trade, especially countries which have been targeted with penal tariffs. Trump’s latest declaration that the US will impose 25 per cent tariffs on countries doing trade with Iran clearly sends out the message that this policy of weaponisation of tariffs will continue.

The charges against Fed chief Jerome Powell signals that markets will continue to be weighed down by the US president’s unprecedented, unstable, unpredictable behaviour, they predicted.

The Indian market rebounded on Monday after US Ambassador to India, Sergio Gor, said the US is determined to have a trade agreement with India and talks will resume.

Moreover, Q3 results will lead to stock-specific action in near term, market watchers added.

Asia-Pacific markets traded in the green zone during the morning session as traders overlooked geopolitical concerns in Iran and Venezuela, as well as a criminal investigation into the US Federal Reserve Chair Jerome Powell.

Japan’s benchmark Nikkei 225 jumped over 3 per cent following reports of the country’s ruling Liberal Democratic Party planning to dissolve the country’s Lower House later this month and opt for a snap election in February.

In Asian markets, China’s Shanghai index eased 0.03 per cent, and Shenzhen lost 0.31 per cent, Japan’s Nikkei advanced 3.21 per cent, while Hong Kong’s Hang Seng Index gained 0.93 per cent. South Korea’s Kospi advanced 0.74 per cent.

The US markets ended mostly in the green overnight as Nasdaq added 0.26 per cent. The S&P 500 gained 0.16 per cent, and the Dow moved up 0.17 per cent.

On January 12, foreign institutional investors (FIIs) sold net equities worth Rs 3,638 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 3,769 crore.

IANS