Sensex Down 600 Pts, Nifty Below 23,400; Sectoral Indices Trade in Red

The Indian equities market is swinging in red after the U.S.President Donald Trump announced his plans to impose fresh duties on imports of aluminum and steel, while also levying additional reciprocal tariffs. On the other hand, PM Narendra Modi is aiming to bring tariff concessions to ease upcoming talks with Trump and avert an all out trade war.

The broad-based sell-off was seen in sectors including financials, oil and gas, and metal. India Vix shot up by 6% to 14.5.

As of 2:00 pm, Sensex was trading at 77,237, down 622 points or 0.8%, while Nifty tumbled 200 points or 0.9 percent at 23,359. Close to 830 shares advanced, 2,799 shares were down and 107 remained unchanged.

Aditi Gupta, Economist at Bank of Baroda said, “As long as there's no clarity on the next steps—what tariffs the U.S. will impose, on which countries, and how others will respond—the market will remain volatile. These tariff-related developments will have spillover effects on India and other global markets.”

The uncertainty is also driving investors towards safer alternatives like U.S. equities. She added, “Over the next couple of months, as we get more clarity on U.S. policies—who is imposing tariffs, who is retaliating, and to what extent—markets should stabilize. Right now, the market sentiment is largely driven by nervousness. Once the policy outlook is clearer, some normalcy should return.”

Market sentiments largely remain bleak on account of persistent FII outflows, tariff tensions and weak December quarter earnings. Ambareesh Baliga, an independent market analyst said, “There has not been any such sort of news or announcements which can change the direction of the market. Trump issue-all his announcements and the volatility, is going to continue.”

In February FIIs offloaded equities worth ₹10,179 crore as strong U.S. dollar and rising treasury yields eroded the appeal of the emerging markets. Rupee slipped by 49 paise to an all-time-low of 87.92 per dollar. Amit Parbari, MD of CR Forex Advisor expects the rupee to settle between the range of 87.50-88.20 in the near term, with 87.50 as a crucial support level.

The BSE Midcap and BSE Smallcap fell by over 2%.

All 13 major sectoral indices are trading in red wherein metals took a major blow. BSE Metal fell by 3% after Donald Trump vowed to impose 25% duties on steel and aluminium imports on February 9. Tata Steel, SAIL, and Vedanta fell between 3-4%.

Shares of Oil India tumbled 4% after reporting poor Q3 earnings due to lower selling prices. While VA Tech Wabag jumped by 4% after securing a $364 million order and furnishing upbeat Q3 numbers, Shipping Corporation of India was down by 6% after posting poor December quarter numbers.

On the technical front, Jatin Gedia, Technical Research Analyst at Sharekhan said that Nifty 50’s 20-day moving average is offering support at 23,300. He noted, “If Nifty falls below 23,300, the next support is at 23,280. Immediate resistance stands at 23,600.”

Investors now await inflation numbers from both India and the U.S., which is set to be furnished on February 12.