The Indian stock markets opened with modest volatility on Wednesday, reflecting a complex global economic landscape marked by potential trade tensions and shifting investor sentiments. The Sensex and Nifty indices started the day with marginal losses, indicating a cautious trading environment.

The Sensex opened slightly higher at 80,121.03 from its previous close of 80,004.06 but slipped, trading at 79,957.31 as of 9.45 am, down by 46.75 points or 0.06 per cent. Similarly, the Nifty opened at 24,204.80 against its previous close of 24,194.50 and is currently at 24,179.35, declining by 15.15 points or 0.06 per cent.

Foreign Institutional Investors (FIIs) showed a positive trend, purchasing equities worth ₹1,158 crore for the second consecutive day, potentially signalling renewed confidence in the Indian market. However, domestic institutional investors counterbalanced this by selling equities worth ₹1,910 crore.

Sector-specific performance revealed interesting dynamics. The Digital and IT indices rallied over 1 per cent, while the Auto index experienced the most significant decline, shedding over 1 per cent. “Market participants will be closely watching the trade space which has become unpredictable,” noted Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The morning was dominated by concerns over potential trade tensions, triggered by President-elect Trump’s announcements of tariffs on Mexican, Canadian, and Chinese imports. “Trump has declared only 10 per cent additional tariffs on Chinese imports, indicating that he will be careful not to trigger imported inflation in the US,” Vijayakumar added.

Stock-specific movements showed varied trends. Top gainers included Adani Enterprises (2.46 per cent), Coal India (2.16 per cent), Mahindra & Mahindra (1.45 per cent), Adani Ports (1.15 per cent), and BEL (1.14 per cent). Conversely, top losers were Cipla (-1.25 per cent), IndusInd Bank (-11.25 per cent), Ultratech (-0.98 per cent), Bharti Airtel (-0.88 per cent), and Tata Steel (-0.87 per cent).

Technical analysts are closely monitoring key resistance and support levels. “The 24,000 level is expected to act as a critical support zone,” said Hardik Matalia, Derivative Analyst at Choice Broking. “A decisive break below this level could drag the index toward the 23,800–23,600 range.”

Sameet Chavan from Angel One highlighted the market’s current structure, noting, “Prices are struggling near the key resistance zone of 24,400–24,500. Surpassing this hurdle remains critical for any meaningful extension of upside.”

Global market indicators provided mixed signals. Wall Street rallied overnight on easing inflation indicators, while Asian markets showed a varied performance. The Nikkei recorded losses following Trump’s tariff commentary, while the Hang Seng gained ground, driven by technology and financial stocks.

Specific stock developments also caught market attention. AstraZeneca Pharma, for instance, gained CDSCO approval to import the cancer drug Lynparza, potentially impacting its stock performance.

As the market continues to navigate these complex dynamics, investors are advised to remain cautious. “Buying on intraday correction and selling on rallies would be the ideal strategy for day traders,” recommended Shrikant Chouhan, Head of Equity Research at Kotak Securities.

The market will likely continue its range-bound movement, with traders keeping a close eye on upcoming economic indicators and global developments.