Mumbai, Feb 3 (PTI) – Equity benchmark indices Sensex and Nifty opened sharply lower on Monday, mirroring weak sentiment across Asian markets as concerns grew over US President Donald Trump’s decision to impose tariffs on several trading partners.
The BSE Sensex nosedived 731.91 points to 76,774.05 in early trade, while the NSE Nifty slumped 243 points to 23,239.15, reflecting heightened market anxiety.
Market Movers and Losers
Among the 30-share blue-chip pack, Larsen & Toubro, NTPC, Tata Steel, Power Grid, Tata Motors, Reliance Industries, ICICI Bank, and Tata Consultancy Services emerged as major laggards, dragging the indices lower.On the other hand, Titan, Maruti, Nestlé, and Bajaj Finserv bucked the trend and traded in the green.
Global Cues Weigh Heavy
Asian markets, including Seoul, Tokyo, and Hong Kong, witnessed sharp declines, following a weak closing on Wall Street on Friday. Investors are reacting cautiously to the latest developments surrounding Trump's new tariffs, which are set to take effect from Tuesday. These include:- 25% tariffs on most imports from Canada and Mexico
- 10% tariffs on Chinese goods
"Despite an excellent Budget, the market remains under pressure due to Trump's tariff move and global uncertainty. The immediate effect on India might be minimal, but the spike in the dollar index above 109.6 is likely to trigger more selling by foreign investors," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
FIIs Continue Selling Amid Volatility
Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,327.09 crore on Saturday, adding to the selling pressure in the market, as per exchange data.Key Domestic Factors: RBI Policy in Focus
Investors are also keeping a close watch on the Reserve Bank of India's (RBI) monetary policy announcement this week, which could set the tone for market direction amid ongoing volatility."While global factors will continue to dictate sentiment, domestic investors will be keenly awaiting RBI’s stance in the upcoming policy decision," noted Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Oil Prices Climb Amid Market Uncertainty
Meanwhile, Brent crude prices climbed 0.70% to $76.20 per barrel, adding another layer of concern for emerging markets like India, which remain sensitive to oil price fluctuations.Market Performance on Saturday
Indian stock markets remained open on Saturday due to the presentation of the Union Budget. Despite the volatility, the BSE Sensex managed a marginal gain of 5.39 points (0.01%) to close at 77,505.96, while the Nifty slipped 26.25 points (0.11%) to settle at 23,482.15.As the week unfolds, all eyes remain on global trade developments and domestic monetary policy, both of which will shape investor sentiment in the near term.
