Sensex, Nifty open lower over weak global cues, FII selling

The Indian benchmark indices continued their losses on Wednesday, tracking persistent global risk-off sentiment, continued foreign fund outflows and mixed earnings cues. 

As of 12 pm, the Sensex lost 446 points, to reach 81,734.12 and the Nifty declined 108.70 points, or 0.43%% to25,123.

Main broadcap indices performed in line with benchmark indices, with the Nifty Midcap 100 losing 0.18 %, and the Nifty Smallcap 100 easing 0.11 %.

Sectorally, indices were trading mixed, with Nifty metal and pharma being the notable gainers -- up 0.83 % and 0.86 %, respectively. IT and chemicals were among major losers, down 0.81 % and 1.21 %, respectively.

Immediate support lies at 25,050–25,100 zone, while resistance is now anchored near 25,350–25,400 zone, market watchers said.

US President Donald Trump threatened to impose 200 % tariffs on French wine and Champagne, said Vikram Kasat, Head Advisory, PL Capital.

Analysts said the stock selloff in US markets amid Trump's renewed Greenland-related threats makes sense if investors are adopting a risk-off approach.

“If investors were simply moving to safer assets, bond prices would have increased. Instead, they also fell on Tuesday, sending yields to their highest value since August,” Kasat pointed out.

Greenland Prime Minister Jens-Frederik Nielsen on Tuesday asked residents to start preparing for a possible military invasion from the US, however adding that such a scenario is unlikely.

Another analyst noted that if the threatened tariffs come into effect, Europe could retaliate leading to a trade war negatively impacting global trade, resulting in further selling in stock markets.

In Asian markets, China’s Shanghai index gained 0.36 %, and Shenzhen added 1.03 %, Japan's Nikkei declined 0.56 %, while Hong Kong's Hang Seng Index dropped 0.18 %. South Korea's Kospi eased 0.36 %.

The US markets ended in the red in the last trading session as Nasdaq eased 2.39 %. The S&P 500 lost 2.06 %, and the Dow declined 1.76 %.

On January 20, foreign institutional investors (FIIs) sold net equities worth ₹2,938 crore, while domestic institutional investors (DIIs) were net buyers of equities worth ₹3,666 crore.

(With inputs from syndicated feed)