Indian equity indices opened lower on Thursday following a sharp sell-off in global markets triggered by US President Donald Trump’s announcement of reciprocal tariffs.
At around 9:20 AM, the Sensex was down by 470 points, or 0.61%, at 76,197, while the Nifty dropped 105 points, or 0.45%, to 23,227.
In early trading, midcap and smallcap stocks outperformed large-cap stocks.
The Nifty Midcap 100 index gained 125 points, or 0.24%, at 52,183, while the Nifty Smallcap 100 index rose 121 points, or 0.75%, at 16,283.
Sectoral Performance
On the sectoral front, auto, IT, PSU banks, FMCG, metals, and media stocks were the biggest losers.
In contrast, pharma, realty, and energy stocks emerged as the top gainers.
In the Sensex pack, major losers included Infosys, HCL Tech, TCS, Tech Mahindra, Tata Motors, M&M, Bharti Airtel, Reliance, HDFC Bank, Maruti Suzuki, and Kotak Mahindra Bank. On the flip side, major gainers included Sun Pharma, Power Grid, NTPC, Bajaj Finance, Bajaj Finserv, Titan, and UltraTech Cement.
Expert Analysis
Vikram Kasat, Head of Advisory at PL Capital-Prabhudas Lilladher, highlighted the broader impact of the tariff shocks.
He stated, “Large tariff shocks threaten the US and global economies with a potential recession. If these policies persist, they are likely to push the US and global economy into a recession this year.”
Kasat further noted the unequal impact of tariffs: “Canada and Mexico have gotten off lightly, while those in Asia, particularly China and Vietnam, have been hit hard. The European Union and Japan are somewhere in the middle. The hope is that no one retaliates. If retaliation happens, escalation is inevitable; if no one retaliates, this is the high-water mark.”
Global Markets React To US Tariffs
Most Asian markets witnessed heavy selling in response to the US tariffs.
Markets in Tokyo, Shanghai, Hong Kong, Bangkok, and Seoul all closed in the red. However, US markets closed in the green during Wednesday’s trading session.
On the institutional front, foreign institutional investors (FIIs) continued their selling streak, offloading equities worth Rs 1,538 crore on April 2.
In contrast, domestic institutional investors (DIIs) remained net buyers for the fourth consecutive day, purchasing equities worth Rs 2,800 crore.
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