Indian stock markets began Wednesday’s session on a weaker note, mirroring a sluggish trend in global equities. Both benchmark indices—the BSE Sensex and the NSE Nifty 50—registered early losses amid cautious investor sentiment and mixed global signals.
The Sensex opened nearly 150 points lower, dropping to around 82,400, while the Nifty 50 slipped below the 25,150 mark, led by selling pressure in auto and metal stocks. Sectoral indices reflected broader caution, with the Nifty Auto and Nifty Metal indexes each falling by over 0.8% in early trade.
Market analysts attributed the decline to the lack of strong cues from U.S. and Asian markets, as investors remain watchful ahead of key economic data releases. The U.S. consumer price index (CPI) report due this week has dampened hopes of early interest rate cuts by the Federal Reserve, pushing global equities into a consolidation phase.
On the domestic front, auto stocks came under pressure after reports suggested that Tesla’s India entry talks could resume with potential tariff relaxations on imported EVs. Shares of Tata Motors, Mahindra & Mahindra, and Maruti Suzuki saw minor pullbacks as investors assessed how fresh competition could impact local demand dynamics.
Metal counters also traded in the red, tracking a stronger U.S. dollar and softening base metal prices globally. Stocks such as Hindalco, JSW Steel, and Tata Steel contributed to the sectoral drag, reflecting weakness in global demand indicators.
Despite the broader weakness, HDFC Bank provided some support to the indices. Its shares rose over 0.7% amid investor optimism following speculation that the bank may consider a bonus issue. While no official confirmation has been made, the buzz helped the stock outperform most banking peers.
In contrast, HDB Financial Services, a subsidiary of HDFC Bank, witnessed selling pressure, declining by more than 2% in early trade after reporting a sharp increase in provisioning for bad loans in its quarterly update.
Meanwhile, Dixon Technologies, a key electronics manufacturing player, climbed around 2.5% following a positive analyst upgrade citing strong order visibility and production-linked incentive (PLI) tailwinds.
In the broader market, mid-cap and small-cap stocks saw mixed movement. While investor interest remains strong in select sectors like capital goods and defence, profit-booking was visible in recent outperformers.
Asian markets offered little encouragement, with indices in Japan, South Korea, and Hong Kong mostly flat or marginally lower. The uncertainty around U.S. inflation data and slowing momentum in China’s recovery are keeping regional investors on the sidelines.
Currency markets remained steady, with the Indian rupee trading around 83.50 against the U.S. dollar, supported by a dip in crude oil prices and sustained foreign institutional investment inflows.
Looking ahead, market participants will be closely watching the U.S. CPI data, upcoming corporate earnings from Indian IT and banking majors, and any policy signals from the Reserve Bank of India as inflation concerns linger domestically as well.
Overall, the market tone remains cautious, with volatility expected to rise in the coming sessions as macroeconomic data begins to shape the direction of interest rates, global demand, and investment flows.
