Nifty & Sensex Open In Red; Metals & Pharma Lead Declines

Indian stock markets opened on a weak note on Tuesday after the US government confirmed plans to impose steep 50 per cent tariffs on Indian goods from Wednesday.

The move, revealed in a draft notice by the Department of Homeland Security (DHS), sent jitters across global markets and triggered a sell-off in equities.

At opening trade, the Nifty 50 fell 167.90 points (0.67 per cent) to 24,799, while the Sensex declined 546 points (0.67 per cent) to 81,089.

US President Donald Trump earlier announced that he would raise tariffs on Indian goods from 25 per cent to 50 per cent, citing New Delhi’s continued purchase of Russian crude oil despite Western sanctions. The move will escalate trade tensions and weigh on India’s export-driven sectors.

Most sectoral indices witnessed selling pressure. The Nifty Metal index dropped 1.04 per cent, while the Nifty Pharma index slipped 1.57 per cent. Banking stocks also came under pressure, with the Nifty PSU Bank index falling 0.84 per cent and the Nifty Private Bank index declining 0.96 per cent.

In the Nifty pack, Bajaj Auto, Hero Motocorp, HUL, and Infosys emerged as the top gainers, while Tata Steel, Dr Reddy’s Laboratories, ICICI Bank, and Tata Motors led the list of losers.

Analysts Caution on Market Outlook

Market experts highlighted technical concerns as well as global uncertainties. Anand James, Chief Market Strategist at Geojit Investments, noted, “Inability to close above the 25,000/25,033 zone yesterday suggests that buyers are not keen on chasing prices higher. This leaves room for dips. The possibility of an upswing could diminish if Nifty slips below 24,870, but it would require a direct fall below 24,740 to initiate downside plays.”

Adding a longer-term perspective, Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that liquidity remains the principal driver of market resilience. “Liquidity flows are likely to be sustained, so the market is unlikely to correct significantly. Elevated valuations may continue. Investors should avoid unjustifiably expensive small caps and focus on reasonably valued large caps.”

The US markets also closed in the red, with the Dow Jones Industrial Average falling 0.77 per cent, the Nasdaq slipping 0.22 per cent, and the S&P 500 down 0.43 per cent.

Across Asia, the trend was mixed. Japan’s Nikkei dropped 1.06 per cent, South Korea’s Kospi declined 1 per cent, and Hong Kong’s Hang Seng fell 0.13 per cent.

Meanwhile, China’s Shanghai Composite Index edged up 0.07 per cent, providing a rare bright spot.

On Monday, foreign institutional investors (FIIs) continued their selling streak for a second consecutive day, offloading equities worth ₹2,466 crore. However, domestic institutional investors (DIIs) provided some support by purchasing shares worth ₹3,176 crore.

The combined pressure of global trade tensions, sectoral weakness, and sustained foreign outflows has left markets on edge, with investors bracing for further volatility as US tariffs take effect.

Also Read: Adani Green Energy Rating Upgraded To AA With Stable Outlook By CareEdge