Markets Open Lower as Global Weakness, FII Outflows and Trade Uncertainty Weigh on Sentiment

Indian equity benchmarks slipped in early trade on Monday, mirroring weakness across Asian markets and continued selling by foreign investors. Lingering uncertainty over a possible India–US trade agreement and pressure on the rupee further dampened investor confidence at the start of the week.

Benchmarks Slide in Early Trade

The BSE Sensex fell 384 points to trade around 84,883 shortly after markets opened, while the NSE Nifty dropped nearly 123 points to hover near 25,924. Market participants remained cautious as global cues turned negative and macroeconomic risks persisted.

Among Sensex constituents, stocks such as Mahindra & Mahindra, Bharti Airtel, Trent, NTPC, Bajaj Finserv and Power Grid dragged the index lower. Select defensive and FMCG counters offered some support, with Asian Paints, Hindustan Unilever, UltraTech Cement, Bharat Electronics and Tata Steel trading in the green.

Global Cues Remain Unfavourable

Asian equities were broadly under pressure, with key indices in Japan, South Korea, China and Hong Kong trading lower. Market participants across the region appeared wary ahead of crucial economic data releases from the United States and China later this week.

US equities ended the previous session on a weak note, adding to the cautious global backdrop. Analysts noted that stress signals in technology-heavy segments, reflected in Nasdaq futures, have also contributed to subdued risk appetite.

Foreign Fund Outflows Continue

Foreign Institutional Investors (FIIs) remained net sellers, offloading Indian equities worth over ₹1,100 crore in the previous session, according to exchange data. In contrast, Domestic Institutional Investors (DIIs) continued to provide support, buying shares worth nearly ₹3,870 crore.

Market strategists said persistent FII selling has been one of the key factors limiting any sustained upside in domestic equities, despite healthy participation from local investors.

Trade Deal Uncertainty and Rupee Pressure

Analysts pointed out that the absence of clarity on an India–US trade agreement continues to cast a shadow over export-oriented sectors and broader market sentiment. Concerns over the widening trade deficit and currency weakness have added to investor unease.

The rupee weakened further on Monday, slipping to a fresh record low of 90.58 against the US dollar in early trade, reflecting global dollar strength and capital outflows.

Commodities and Recent Market Performance

In the commodities market, Brent crude prices edged higher, rising over half a percent to trade above $61 per barrel.

On Friday, Indian equities had closed higher, with the Sensex gaining nearly 450 points and the Nifty rising about 0.6%. However, analysts cautioned that near-term market direction will remain sensitive to global developments, currency movements and policy-related signals from major economies.