Indian domestic equities remained subdued on Monday morning trade with benchmark indices Nifty and Sensex trading in the red. Telecom and manufacturing stocks were also seen trading in a weak trend in line with global sentiments and foreign funds outflow continued.
Sensex slipped by at least 343 points, trading 0.45 per cent down. Nifty lost nearly 109 points and traded 0.47 per cent down. Last Friday, foreign investors sold equities worth Rs 2,758.49 crore as per the exchanges.
The Sensex laggards were led by Zomato, while HCL Tech, PowerGrid, Tata Motors, Adani Ports, Reliance Industries, IndusInd bank, Infosys, TCS, and HDFC Bank lagged on Friday.
Geojit Financial Services' V K Vijayakumar said the market was looking forward to income tax cuts in the budget. "If the expectations are met, there can be a relief rally in the market. But if a rally is to sustain, we need data indicating growth and earnings revival," he added.
In contrast, other Asian markets, such as Shanghai and Hong Kong, rallied. Tokyo markets, however, fell.
The rupee fell 22 paise to hit 86.44 vs the US dollar on Monday morning on weaker equities and the American currency gaining across the globe.
The Indian currency opened weaker this week on the uncertainty around impending Trump tariffs, moving away from the stable trend last week that ended with the rupee gaining on Friday.
The dollar index which measures the USD with respect to six major currencies was, after US President Donald Trump threatened Colombia with 25 percent tariffs. It stood 0.21 percent higher at 107.67 after the South American nation, returning a plane of migrants sent by the US.
This was done after Colombia agreed to Trump's terms with Washington whose sanction and tariffs were paused including letting come into the country flights carrying deportees.
White House Press Secretary Karolina Leavitte said that Colombia agreed to "all of President Trump's terms, including the unrestricted acceptance of all illegal aliens from Colombia returned from the United States, including on US military aircraft, without limitation or delay.".
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