Mumbai, Feb 3 (PTI) – Indian equity benchmarks Sensex and Nifty ended lower on Monday, snapping their five-day winning streak, as weak global cues and concerns over fresh U.S. tariffs dampened investor sentiment.
The BSE Sensex shed 319.22 points, or 0.41%, to close at 77,186.74, after an intra-day slump of 749.87 points to 76,756.09. Meanwhile, the NSE Nifty fell 121.10 points, or 0.52%, to settle at 23,361.05.
Major Drags and Gainers
Heavyweights like Larsen & Toubro, Tata Motors, Hindustan Unilever, Asian Paints, ITC, Power Grid, NTPC, and Reliance Industries led the declines.On the other hand, Bajaj Finance surged over 5%, emerging as the top gainer. Mahindra & Mahindra, Bajaj Finserv, Bharti Airtel, and Maruti Suzuki also closed in positive territory.
Global Market Woes Drag Indian Equities
Investor sentiment was rattled after U.S. President Donald Trump imposed steep tariffs on imports from China, Mexico, and Canada. The move triggered fears of an intensifying trade war, adding to global economic uncertainties."Slump in global equity markets weighed negatively on Indian benchmarks after Trump’s tariff announcement. The sharp depreciation of the rupee further raised concerns that foreign investors may continue their selling spree," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Vinod Nair, Head of Research at Geojit Financial Services, echoed similar concerns, stating that the global trade conflict could escalate financial risks and disrupt economic growth.
Sectoral Performance and Market Breadth
The broader market saw heavy declines, with the BSE smallcap index tumbling 1.77% and the midcap index shedding 0.89%.Among sectoral indices, capital goods plunged 4.29%, industrials lost 3.79%, power dropped 3.30%, utilities fell 2.71%, oil & gas declined 2.52%, and metal dipped 1.99%.
However, sectors like BSE healthcare, IT, consumer durables, teck, and BSE Focused IT managed to stay afloat.
Market breadth was largely negative, with 2,877 stocks declining, 1,139 advancing, and 168 remaining unchanged on the BSE.
India's Manufacturing Sector Sees Strong Start to 2025
Despite the weak stock market, India’s manufacturing sector started 2025 on a strong note, with growth hitting a six-month high in January.The HSBC India Manufacturing Purchasing Managers' Index (PMI) jumped from 56.4 in December to 57.7 in January, driven by the fastest expansion in new export orders since February 2011.
Global Market Trends and FII Activity
Asian markets—Seoul, Tokyo, and Hong Kong—saw sharp declines, while European markets also traded in deep red. Wall Street ended lower on Friday, adding to the negative global sentiment.Meanwhile, global oil prices climbed, with Brent crude rising 1.15% to $76.50 per barrel.
On the foreign investment front, Foreign Institutional Investors (FIIs) continued their selling spree, offloading ₹1,327.09 crore worth of equities on Saturday, according to exchange data.
