Indian equities drop amid Trump’s Tariff moves; Nifty50 and Sensex ends the day lower
Indian equities drop amid Trump’s Tariff moves; Nifty50 and Sensex ends the day lower
Indian equities took a hit on concerns over potential trade wars, triggered by US President Donald Trump’s new tariff measures against Canada, Mexico, and China. As a result, both the Nifty50 and Sensex ended the day lower, with the Indian rupee also dipping below ₹87 against the US dollar.
At the close, the Nifty50 had fallen 0.5%, settling at 23,361.05 points, while the Sensex ended 0.4% down at 77,186.74 points. The broader market experienced steeper declines, with the Nifty SmallCap 100 index dropping 2.1% and the Nifty MidCap 100 falling 0.9%.
Foreign portfolio investors were net sellers, offloading equities worth ₹3,958 crore, while domestic institutional investors stepped in as net buyers, acquiring ₹2,708 crore worth of stocks. Concerns over global trade led to declines in Asian and European markets as well.
The trading session was marked by volatility, with the indices seeing sharp drops of over 1% in the morning, followed by a partial recovery as the day progressed. "The Indian market faced turbulence as concerns grew over potential global trade disruptions due to President Trump’s tariffs," said Devarsh Vakil, Head of Prime Research at HDFC Securities.
Rajesh Bhosale, Technical Analyst at Angel One, noted, “It was a mixed session as stocks held strong at key support levels after the initial declines, leading to some consolidation. Despite the excitement around the Budget, there wasn’t much of an impact on Nifty’s price action.”
Looking ahead, key events are lined up, including the Delhi elections on Wednesday and the RBI Monetary Policy Committee’s policy decision on Friday. “Investors are awaiting clarity from these events, which could lead to choppy movements within a narrow range for the key indices in the coming days,” Bhosale added.
The Nifty PSE index saw the biggest losses, dropping over 3%, as investors reacted negatively to Budget allocations. Road infrastructure and railway stocks continued their decline for the second consecutive day following the government’s modest expenditure estimates in the Budget.
Engineering giant Larsen & Toubro, a major player in the sector, saw a 4.6% fall, contributing to the pressure on the index. Over the next few days, the main indices are expected to trade within a defined range as investors await further developments on both domestic and global fronts.
