Indian equities opened sharply lower Friday, extending a two-day rout as uncertainties over a delayed India-US trade deal rattled investors, compounding global market tremors and persistent foreign fund outflows.
The benchmark Sensex plunged 600 points at the bell, dipping below the psychologically vital 83,000 mark to trade at 82,700. The Nifty 50 mirrored the slide, shedding 150 points to hover around 25,300, signaling broader unease in national and international affairs.
Out of the 30 Sensex constituents, 26 stocks traded in the red, with only four managing modest gains. Heavy selling hammered banking heavyweights like HDFC Bank and ICICI Bank, alongside auto majors such as Tata Motors and IT bellwethers Infosys and TCS.
"The lack of progress on trade negotiations has amplified risk aversion," said Mumbai-based analyst Rajiv Mehta of Axis Securities. "Coupled with overnight Wall Street losses, it's a perfect storm for domestic sentiment."
The downturn follows a tepid close Thursday, when the Sensex ended 148 points lower at 83,311 and the Nifty slipped 88 points to 25,509. That session already reflected cooling momentum after a choppy October, where foreign portfolio investors (FPIs) netted in ₹14,610 crore— a rebound from September's brutal ₹35,301 crore sell-off.
Domestic institutional investors (DIIs), however, have been steadfast buyers, scooping up ₹65,344 crore in September and ₹4,814 crore on Thursday alone, offsetting FPI disposals of ₹3,605 crore that day.
Global cues offered little solace. Asian markets kicked off the week in distress: Japan's Nikkei tumbled 2.16% to 49,783, South Korea's Kospi fell 2.49% to 3,926, Hong Kong's Hang Seng eased 1.11% to 26,190, and China's Shanghai Composite edged down 0.16% to 4,001.
Across the Pacific, U.S. indices closed lower Thursday— the Dow Jones Industrial Average lost 0.84% to 46,912, the Nasdaq Composite plunged 1.90%, and the S&P 500 declined 1.12%— driven by tech sector woes and inflation fears.
At the heart of the volatility lies the stalled India-US trade pact, now in its third month of limbo. Talks, aimed at slashing tariffs on $500 billion in bilateral goods, hit snags over agricultural subsidies and digital services taxes.
U.S. officials cited domestic political pressures ahead of midterms, while Indian negotiators pushed for safeguards on dairy and pharma imports. "This delay isn't just procedural; it's eroding confidence in export-led growth," noted economist Priya Sharma of the Federation of Indian Chambers of Commerce and Industry (FICCI). "With the rupee weakening to 83.45 against the dollar, importers face steeper costs, squeezing margins further."
Broader economic headwinds, including sticky inflation at 5.8% and a monsoon shortfall curbing rural demand, add layers of caution. Government policy news remains a wildcard: Finance Minister Nirmala Sitharaman's upcoming budget could unveil stimulus measures, but analysts doubt quick fixes for trade frictions.
Looking ahead, experts warn of prolonged choppiness. "Bulls need clarity by mid-November, or we could test Sensex supports at 81,500," Mehta cautioned. DII resilience may cushion the fall, but FPI flows— volatile amid U.S. rate hike speculation— hold the reins. For now, retail investors, who poured in ₹25,000 crore this year, grapple with the whiplash in this trending news story of economic interdependence.
As breaking news updates unfold, public interest journalism underscores the stakes: A resilient Indian economy demands diplomatic breakthroughs to shield jobs and growth from geopolitical crosswinds. Investors, eyes glued to Washington and Delhi dispatches, brace for what could be a defining week in Indian politics and economy.
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