Benchmark stock indices Sensex and Nifty closed lower on Monday, in line with weak global markets amid concerns over potential tariffs imposed by US President Donald Trump on some trading partners.
The 30-share BSE Sensex dropped 319.22 points or 0.41%, settling at 77,186.74, ending a five-day winning streak. Intra-day, it fell 749.87 points or 0.96% to 76,756.09. The NSE Nifty also declined by 121.10 points or 0.52%, closing at 23,361.05.
Among the Sensex stocks, Larsen & Toubro, Tata Motors, Hindustan Unilever, Asian Paints, ITC, Power Grid, NTPC, and Reliance Industries were notable laggards. On the other hand, Bajaj Finance surged over 5%, while Mahindra & Mahindra, Bajaj Finserv, Bharti Airtel, and Maruti ended in positive territory.
Global markets saw sharp declines in Seoul, Tokyo, and Hong Kong, while European markets traded with significant losses. US markets closed lower on Friday.
“The slump in global equity markets was driven by Trump’s announcement of tariffs on China, Mexico, and Canada, raising concerns among investors. Additionally, the sharp depreciation of the rupee has heightened fears that foreign investors may continue selling,” commented Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
The implementation of a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Chinese goods, set to take effect on Tuesday, added to the market’s uncertainty.
“The global market turmoil stems from the onset of a ‘Trade War,’ as tariff disputes between the US and other nations are unlikely to bring any economic benefits and instead may pose challenges to the global economy, increasing financial risks,” noted Vinod Nair, Head of Research at Geojit Financial Services.
Global oil benchmark Brent crude rose by 1.15% to reach $76.50 a barrel.
In a volatile day of trading, the BSE Sensex eked out a marginal gain of 5.39 points or 0.01%, closing at 77,505.96 on Saturday. The Nifty declined by 26.25 points or 0.11%, settling at 23,482.15. The domestic equity markets were open on Saturday due to the Union Budget presentation.
Foreign Institutional Investors (FIIs) sold equities worth Rs 1,327.09 crore on Saturday, as per exchange data.
