Indian stock markets opened lower on Tuesday due to pressure on metal stocks following US President Donald Trump’s announcement of 25 per cent tariffs on steel and aluminum imports. Additionally, the rupee hit a record intraday low of ₹87.96 against the dollar.
The benchmark BSE Sensex was down 123.91 points or 0.16 per cent at 77,187.89 in early trade, while the broader NSE Nifty declined 43 points or 0.18 per cent to 23,338.60. The Nifty Metal index dropped 3 per cent despite the US Dow Metal Index gaining 3 per cent.
Gainers in the market included Adani Enterprises, which surged 3.85 per cent to ₹2,379, and Grasim Industries, which rose 1.92 per cent to ₹2,520.85. Adani Ports, Hindalco, and Infosys also showed strength, gaining between 0.94 per cent and 1.10 per cent. On the other hand, Eicher Motors was the top loser, falling 5.07 per cent to ₹5,065, while Apollo Hospitals declined 3.57 per cent to ₹6,520. Coal India, Power Grid, and Kotak Mahindra Bank also traded lower, dropping between 1.31 per cent and 1.42 per cent.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted the outperformance of largecaps over the broader market in the current bearish phase. He highlighted that while the Nifty is down only 1.52 per cent year-to-date, the Nifty Midcap and Smallcap indices have declined 8.6 per cent and 11.3 per cent respectively.
The Reserve Bank of India’s decision to double its open market operations purchase to ₹40,000 crore for February 13 is expected to boost banking sector liquidity, putting banking stocks in focus. Several companies reported strong quarterly results, including Apollo Hospitals, Patanjali, Nalco, and Nykaa.
Market sentiment remains cautious ahead of US Federal Reserve Chair Powell’s Congressional hearings and upcoming US inflation data. Foreign Institutional Investors (FIIs) were net sellers of ₹2,463 crore on February 10, while Domestic Institutional Investors (DIIs) bought equities worth ₹1,515 crore.
In the commodities market, gold hit a record high of $2,936 per ounce, up 2 per cent, as haven demand increased following the US tariff announcement. Brent crude gained 1 per cent to $76 per barrel on tighter Russian supply concerns.
Vikas Jain, Head of Research at Reliance Securities, pointed out that the USD/INR surging to nearly ₹88 has contributed to market volatility. He expects intra-day volatility to persist despite the market adjusting to trade tariff concerns.
Technical analysts suggest caution, with Shrikant Chouhan of Kotak Securities noting that the market structure is weak. He mentioned that a fresh sell-off could occur if the 20-day SMA or 23,300/77000 level is rejected. The Nifty faces key resistance at 23,460, with immediate support at 23,260.
Investors are also keeping an eye on Prime Minister Modi’s visit to Paris for the AI Action Summit and his upcoming meeting with President Trump in the US to discuss trade and defense matters.
Overall, the markets are reacting to global developments and domestic factors, with volatility expected to continue in the near term.
