Indian Equity Markets Fall Sharply On Weak Global Cues & US Trade Concerns

Indian equity markets experienced a significant downturn on Monday, driven by weak global cues and concerns over US trade policies, which impacted domestic investor sentiment.

At the close of trading, the BSE Sensex dropped 824 points, or 1.08%, ending at 75,366. The NSE Nifty50 also saw a sharp decline, shedding 263 points, or 1.14%, to finish at 22,829.

Among the 30 stocks on the Sensex, only six managed to close in positive territory.

ICICI Bank was the top gainer, rising 1.75%, followed by SBI, Hindustan Unilever, Asian Paints, UltraTech Cement, and Maruti Suzuki India.

However, the majority of stocks on the index saw losses, with Zomato, Tech Mahindra, HCLTech, and Tata Motors suffering the most.

On the Nifty50, 10 stocks posted gains, with Britannia Industries leading the pack with a 1.93% rise, followed by ICICI Bank, Hindustan Unilever, Larsen & Toubro, and Nestle India.

On the downside, Bharat Electronics Limited (BEL) fell 2.68%, followed by HCLTech, JSW Steel, and Trent.

Sector performance was predominantly negative. The Media index led the declines, falling 3.83%, followed by the Pharma index, which dropped 2.35%, and the IT index, down by 2.19%.

The PSU Bank index was the only exception, showing a marginal gain of 0.12%.

Broader market indices faced even steeper losses. The Nifty Midcap 100 fell 2.25%, while the Nifty Smallcap 100 tumbled 3.51%.

Rupak De of LKP Securities noted that the market’s downturn from its recent consolidation phase had heightened pessimism.

He stated, “Sentiment is likely to favour bearish trades in the short term, particularly as long as the index remains below 23,000. On the lower side, the prevailing weakness could potentially lead to a decline toward 22,500.”

Global Markets Show Mixed Reactions

In global markets, Asian indices showed mixed reactions. Hong Kong’s Hang Seng Tech Index rose by 2%, while Japan’s Nikkei 225 futures dropped by 0.6%.

India’s volatility index, the India VIX, surged 7.36%, closing at 17.98, reflecting increased market uncertainty.

Meanwhile, gold experienced volatile trading, with Comex gold encountering resistance around $2,770, but holding strong support at $2,750, indicating resilience against a significant dip.

Also Read: India’s Multi-Faceted Growth Strategy Drives Global Influence: Amitabh Kant