Sensex falls 849 points, Nifty down 256; Rupee weakens further
AMN
The Indian stock market experienced a significant downturn on Tuesday, driven by investor anxiety over the looming US imposition of a 50% tariff on Indian goods. The new tariffs, scheduled to take effect on Wednesday, triggered a broad-based sell-off across multiple sectors.
Headline Indices Suffer Major Losses
- Sensex closed at 80,786.54, marking a decline of 849.37 points or 1.04%. The index opened lower and continued to fall throughout the day, hitting an intraday low of 80,685.98.
- Nifty ended the day down 255.70 points or 1.02%, settling at 24,712.05.
Market Commentary
Vinod Nair, Head of Research at Geojit Investments Limited, noted that the domestic market sentiment turned cautious as the US tariff deadline approached. He added that the continued depreciation of the Indian Rupee is also a factor, potentially impacting foreign institutional investment.
Jateen Trivedi of LKP Securities highlighted that the US tariffs are expected to negatively affect India’s export outlook, which could limit any sustained recovery in the Rupee. While a slight softening in crude oil prices offered some relief, the negative impact of the tariffs overshadowed these gains.
Sector-Wise Performance
The majority of sectoral indices traded in the red, reflecting the widespread selling pressure.
- Financials: The banking and financial services sectors were particularly hard hit. Nifty Bank fell 1.25%, and Nifty Fin Services dropped 1.35%.
- Automobiles & IT: The auto and IT sectors also experienced declines, with Nifty Auto down 0.41% and Nifty IT down 0.60%.
- FMCG: In contrast to the general trend, the FMCG (Fast-Moving Consumer Goods) sector saw gains, surging 0.91%. This was attributed to expectations of increased consumption.
- Broader Market: Broader market indices followed the main indices downward. Nifty Small Cap 100 plunged 2.03%, and Nifty Midcap 100 slipped 1.62%.
Top Performers & Laggards
- Gainers: Hindustan Unilever, Maruti Suzuki, and ITC were among the top gainers on the Sensex, all from the FMCG sector.
- Losers: A wide range of companies, including Sun Pharma, Tata Steel, Bajaj Finance, Tech Mahindra, and HDFC Bank, ended the session in negative territory.
Rupee Weakens Further
The Indian Rupee continued its depreciation, falling by 0.18 to trade near 87.75 against the dollar. FII outflows and overall dollar demand contributed to this weakness. The trading range for the Rupee is now projected to be between 87.25 and 88.25, with a risk of further depreciation.
