Indian equity indices opened Wednesday’s trading session on a lower note. The NSE Nifty 50 opened 98 points, or 0.43%, lower at 22,847, while the BSE Sensex fell 180 points, or 0.24%, to open at 75,787.27.
Bank Nifty opened 192 points or 0.39% lower at 48,895.35. The Nifty Midcap 100 declined 266 points, or 0.53%, to open at 49,485.80.
US President Donald Trump proposes to impose 25% tariffs on pharmaceuticals, automobiles, and semiconductor chips. The initiative’s goal is to enhance local manufacturing and tackle what Trump views as unfair trade practices.
As Trump announced to levy import tariffs, the pharma stocks were trading in the red, sitting as the major losers in the Nifty 50. Dr Reddy’s Lab, Sun Pharma, Cipla, M&M, and TCS were the significant losers in the Nifty 50.
Meanwhile, BEL, NTPC, Tata Steel, Hindalco, and Tata Motors are the top gainers in the Nifty 50.
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The GIFT Nifty indicated that the equity markets might open on a subdued note. It was up 19 points, or 0.08%, at 22,959. During the pre-open session, the Nifty 50 was down 98 points, or 0.43%, at 22,847.25, while the Sensex was down 180 points, or 0.24%, at 75,787.27.
“Despite largecap valuations turning fair and even attractive in segments like financials, the market continues to be weak. Seen in the context of new records being set by S&P 500 and Nasdaq, India’s underperformance is striking,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “News of Chinese authorities encouraging their top businessmen to invest is another headwind for India since Chinese stocks are cheap ( Hang Seng is trading at PE of 12.6) and may attract big inflows from FIIs, which means FIIs might continue selling in India.”
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On February 19, the market breadth remained in favour of the bulls as out of 2,284 stocks traded, 1,568 stocks were trading in the green while 649 declined,
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