Mumbai, Feb 3 (PTI) – Indian equity markets closed in the red on Monday as weak global cues and concerns over U.S. President Donald Trump's decision to impose tariffs on major trading partners dampened investor sentiment.
The benchmark BSE Sensex dropped 319.22 points, or 0.41%, settling at 77,186.74, putting an end to its five-day winning streak. The index saw a sharp intra-day decline of 749.87 points, or 0.96%, hitting a low of 76,756.09 before recovering slightly. Meanwhile, the NSE Nifty fell 121.10 points, or 0.52%, closing at 23,361.05.
Top Market Movers
Among Sensex constituents, Larsen & Toubro, Tata Motors, Hindustan Unilever, Asian Paints, ITC, Power Grid, NTPC, and Reliance Industries were the major laggards. On the flip side, Bajaj Finance surged over 5%, while Mahindra & Mahindra, Bajaj Finserv, Bharti Airtel, and Maruti also registered gains.Global Market Impact
Asian markets, including Seoul, Tokyo, and Hong Kong, closed sharply lower, while European markets continued to trade with significant losses. U.S. markets had also ended lower on Friday following Trump's announcement of new trade tariffs.The U.S. government is set to implement a 25% tariff on most imports from Canada and Mexico and a 10% tariffon goods from China, starting Tuesday. The move has triggered fears of an escalating trade war, putting global financial markets on edge.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, stated, "The slump in global equity markets weighed negatively on Indian benchmarks after Trump announced tariffs on China, Mexico, and Canada, fueling pessimism among investors. Besides, the rupee's sharp depreciation has raised concerns about foreign investors continuing their selling spree."
Echoing similar concerns, Vinod Nair, Head of Research at Geojit Financial Services, commented, "The onset of a 'Trade War' has unsettled global markets. The ongoing tariff conflicts between the U.S. and other nations are unlikely to provide any economic benefits and may instead lead to financial instability and global economic challenges."
Oil Prices & Market Volatility
Amid market turbulence, Brent crude oil prices climbed 1.15% to USD 76.50 per barrel, further adding to inflationary concerns.On Saturday, in a highly volatile trading session, the Sensex managed a marginal gain of 5.39 points (0.01%), closing at 77,505.96, while the Nifty declined by 26.25 points (0.11%), settling at 23,482.15. Indian markets remained open on Saturday due to the Union Budget presentation.
Foreign Institutional Investors (FIIs) continued their selling streak, offloading Rs 1,327.09 crore worth of equities on Saturday, according to exchange data.
With global uncertainty looming, investors remain cautious about market stability in the coming sessions.
