Indian benchmark stock indexes are set to open lower on Monday, tracking weakness in their global peers, after the U.S. equities tumbled in the previous session on concerns over softening consumer demand and tariff threats.
The GIFT Nifty futures were trading at 22,680.0, as of 07:29 a.m. IST, indicating that blue-chip Nifty 50 tab will open below Friday’s close of 22,795.90.
U.S. consumer sentiment hit a 15-month low in February and inflation expectations rocketed due to President Donald Trump’s tariff plans, as per latest data.
Most Asian markets fell, tracking the losses in the U.S. on Friday amid growth concerns.
The fear of stagflation in the U.S. is the biggest negative catalyst for markets, Mehta Equities said.
Stagflation, which refers to slowing growth and rising prices, in the world’s largest economy does not bode well for export-driven sectors such as the information technology segment in India.
Indian equity benchmarks log weekly losses on US tariff risks
It also makes India and other emerging markets unattractive for foreign investors as they may prefer safer assets such as the dollar and treasuries.
Foreign portfolio investors (FPIs) have sold Indian shares worth $11.77 billion so far in 2025, including 34.49 billion rupees ($398.2 million) on Friday, as per provisional data, opens new tab.
India’s benchmark indexes are down as much as 13% from their record highs hit in late September last year due to concerns over slowing earnings growth and Trump’s tariff threats.