The Indian markets were spooked by US President Donald Trump’s tariff moves on Canada, Mexico, and China, leading to a decline of over half a per cent in the benchmark indices. The Nifty50 closed at 23,361.05 points, down 0.5 per cent, while the Sensex ended 0.4 per cent lower at 77,186.74 points. The broader market also saw sharp losses, with the NiftySmallCap 100 falling 2.1 per cent and the NiftyMidCap100 down 0.9 per cent.
Foreign portfolio investors offloaded equities worth ₹3,958 crore, while domestic institutional investors were net buyers to the tune of ₹2,708 crore. The fear of a trade war also affected Asian and European stocks.
The trading day was volatile, with the morning session witnessing deep cuts of over 1 per cent in the benchmark indices. However, the stocks clawed back some of their losses during the day. According to Devarsh Vakil, Head of Prime Research at HDFC Securities, the turbulence in the Indian stock market was due to concerns about global trade disruptions following President Trump’s tariffs.
Key events later in the week include the Delhi elections on Wednesday and the RBI Monetary Policy Committee’s decision on Friday on policy rates. Investors are waiting for clarity from these events, with expectations of choppy moves within a defined range for the key indices.
The Nifty PSE index saw a decline of over 3 per cent as investors shunned these stocks due to disappointment over Budget allocations. Stocks related to road infrastructure and railways also fell for the second consecutive day following modest expenditure estimates in the Budget. Larsen & Toubro, an engineering and infrastructure major, dragged down the index with a 4.6 per cent fall. In the coming days, the main indices are expected to trade within a narrow range as investors wait for further developments both domestically and globally.
