Markets closed marginally lower on Monday, ending a two-session rally, as investors exhibited caution following US President Donald Trump’s announcement of a proposed 100% tariff on China. However, a late-hour buying spree allowed the benchmarks to recover from their worst levels of the day.
The BSE Sensex dropped by 173.77 points, or 0.21%, to settle at 82,327.05 after reaching an intraday low of 82,043.14. The NSE Nifty 50 decreased by 58.00 points, or 0.23%, closing at 25,227.35. The benchmarks opened significantly lower, with the Sensex starting at 82,049.16, compared to its previous close of 82,500.82, and the Nifty opening at 25,177.30, down from 25,285.35.
“Indian markets closed on a resilient note today, having opened significantly lower in response to global sentiment shaken by President Trump’s announcement of a proposed 100% tariff on China and Beijing’s warning of countermeasures if the threat is not withdrawn,” noted Ashika Institutional Equities in its market commentary.
Among the Nifty 50 stocks, Adani Ports emerged as the top gainer, surging 2.10% to close at ₹1,439.00 from ₹1,409.40. Bajaj Auto gained 1.50%, ending at ₹9,081.00 from ₹8,946.50, while Bajaj Finance rose 1.48% to ₹1,039.00 from ₹1,023.85. Shriram Finance advanced by 1.20% to ₹673.00 from ₹665.05, and Bajaj Finserv climbed 0.98% to ₹2,023.90 from ₹2,004.30.
On the losing side, Tata Motors recorded the largest decline, falling 2.20% to ₹664.00 from ₹678.95. Infosys dropped 1.49% to ₹1,492.40 from ₹1,514.90, while Wipro fell 1.43% to ₹245.15 from ₹248.70. Hindustan Unilever shed 1.28% to close at ₹2,496.60 from ₹2,528.90, and Nestle India declined 1.19% to ₹1,185.20 from ₹1,199.50.
The broader market breadth showed weakness, with 2,627 stocks declining compared to 1,664 that advanced on the BSE, while 168 remained unchanged. A total of 157 stocks reached their 52-week highs, while 122 hit their 52-week lows.
“Renewed US–China trade tensions sparked broad-based profit booking in early Monday trade, reflecting heightened investor caution. However, reports of an Indian trade delegation visiting the US this week raised hopes for a potential breakthrough in bilateral trade negotiations,” stated Ponmudi R, CEO of Enrich Money.
Sectoral performance was mixed. The Nifty Financial Services index gained 0.16% to close at 26,885.25, while the Nifty Bank edged up 0.03% to 56,625.00. The Nifty Midcap 100 rose 0.11% to 58,762.35, while the Nifty Next 50 declined 0.17% to 68,569.65. The India VIX surged approximately 9%, indicating increased nervousness among investors.
“The domestic markets started the week on a cautious note as the ongoing US government shutdown and escalating US-China trade tensions triggered risk-off sentiment across Asia,” said Vinod Nair, Head of Research at Geojit Investments Limited.
In the currency market, the rupee appreciated slightly by 0.06% to 88.64 as selling by foreign institutional investors eased. “Reports of India increasing energy imports from the US to maintain trade balance contributed to the rupee’s support,” explained Jateen Trivedi, VP Research Analyst at LKP Securities.
Gold prices opened sharply higher, rising by ₹2,000 to trade above ₹1,23,200 per 10 grams, amid renewed US-China trade tensions that reignited safe-haven demand.
Looking ahead, analysts express cautious optimism. “We recommend maintaining a positive bias as long as the Nifty holds above the 25,000 mark, and suggest a strategy of buying quality stocks on dips,” said Ajit Mishra, SVP Research at Religare Broking. Immediate resistance for the Nifty is seen at 25,350-25,400, with support at 25,150-25,100 levels.
Published on October 13, 2025
