Markets Open Lower Amid Trump Tariff Concerns and FII Selling Streak

Indian equity markets opened lower on Friday, with the Sensex dropping 0.22% to 81,009.22 and the Nifty 50 falling 0.26% to 24,705.15 by mid-morning. The decline reflects broader investor anxiety fueled by former US President Donald Trump's renewed tariff threats and persistent foreign institutional investor (FII) outflows.

FIIs extended their selling spree for the ninth consecutive session, offloading ₹5,588 crore worth of equities on July 31. Domestic institutional investors provided a counterbalance, injecting ₹6,372 crore for their 19th straight day of net buying. Eicher Motors emerged as a rare bright spot, surging 4.04% to lead Nifty gainers.

The bearish sentiment was telegraphed by GIFT Nifty's 128-point drop in pre-market trading. Analysts attribute the weakness to multiple headwinds: escalating trade policy risks, hawkish Federal Reserve positioning, lackluster Q1 earnings, and deteriorating technical indicators. Resistance at the Nifty's 25,000 level remains a key psychological barrier.