On Tuesday alone, investors’ wealth got wiped out by Rs 9,29,651.16 crore. Market experts believe that the uncertainty around US trade policies and the impact of tariffs on global trade have led to weak investor sentiment. All sectoral indices on the NSE closed in negative territory amid the broad-based selling pressure in the market
Mumbai: The Indian stock market on Tuesday continued its downward trend with both Sensex and Nifty ending the day in the red, as investors reacted negatively to the latest tariff measures by US President Donald Trump.
Global brokerage Nomura believes reciprocal tariffs by Trump could hurt emerging Asia such as India, China and Thailand more than developed Asian economies (Hong Kong, Singapore).
This move is negative for India as US is the country’s largest export destination which accounts for around 18 per cent of India’s total exports (around 2.2 per cent of gross domestic product, as of fiscal 2023-34, i.e. FY24). With the India-US trade surplus rising in recent years to a high of nearly $38 billion in 2024.
At the closing bell, the Sensex dropped by 1,018.20 points, or 1.32 per cent to close at 76,293.60. During the trading session, the index fluctuated between 77,387.28 at the day’s high and 76,030.59 at the low.
Similarly, the Nifty ended the session down by 309.80 points, or 1.32 per cent to settle at 23,071.80. The index touched a high of 23,390.05 but slipped to 22,986.65 at its lowest point of the day.
As the sell-off in the markets was widespread, 44 out of the 50 Nifty stocks closed the session in the red.
The total market capitalization of BSE-listed companies shrank by Rs 9.3 lakh crore to Rs 408.52 lakh crore.
Equity investors became poorer by Rs 16.97 lakh crore in five days of market crash as persistent foreign fund outflows and fresh US tariffs that reignited trade war fears dented sentiments.
In the past five days, the BSE bellwether gauge slumped 2,290.21 points or 2.91 per cent.
Tracking the weak trend in equities, the market capitalisation of BSE-listed firms eroded by Rs 16,97,903.48 crore to Rs 4,08,52,922.63 crore (USD 4.70 trillion) in five days.
On Tuesday alone, investors’ wealth got wiped out by Rs 9,29,651.16 crore.
“Indian markets underperformed global indices as benchmark indices plunged over 1 per cent each on widespread selling, mainly ignited by worries over escalating tariff war,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
The BSE smallcap gauge plunged 3.40 per cent and midcap index tumbled 2.88 per cent.
“The ongoing uncertainty surrounding US trade policies and tariffs, coupled with domestic economic growth concerns and persistent selling by FIIs, is dampening market sentiment. The mid and smallcap stocks experienced significant declines due to demand concerns and higher valuations,” Vinod Nair, Head of Research, Geojit Financial Services, said.
All BSE sectoral indices ended lower. Realty tanked 3.14 per cent, industrials (2.87 per cent), consumer discretionary (2.73 per cent), capital goods (2.59 per cent), auto (2.49 per cent) and metal (2.23 per cent).
As many as 3,478 stocks declined while 525 advanced and 94 remained unchanged on the BSE.
Foreign Institutional Investors (FIIs) are continuously selling Indian equities, which is denting market sentiments. On Monday, FIIs sold Rs 2,463.72 crore worth of equities. As per NSDL data, FIIs have sold Rs 78,027 crore in January and so far they have sold Rs 85,841 crore worth equities.
Market experts believe that the uncertainty around US trade policies and the impact of tariffs on global trade have led to weak investor sentiment.
All sectoral indices on the NSE closed in negative territory amid the broad-based selling pressure in the market.
The Nifty PSU Bank, Auto, Healthcare, Realty, and Media indices saw the steepest declines, with losses extending up to 3.28 per cent.
Meanwhile, sectors like IT, FMCG, and consumer durables also struggled to end the session down by over 1 per cent each.
Leading the losses were Eicher Motors, Apollo Hospitals, Shriram Finance, Coal India and Bharat Electronics, which saw declines of up to 6.70 per cent.
On the other hand, only six stocks — Adani Enterprises, Trent, Grasim, Bharti Airtel, and Hindalco — managed to stay in positive territory, with gains of up to 0.76 per cent.
The selling pressure was not limited to large-cap stocks. Broader markets were hit even harder, with the Nifty Smallcap100 falling 3.45 per cent and the Nifty Midcap100 dropping 3.02 per cent.
Meanwhile, the Indian Steel Association (ISA) has expressed deep concern over the US decision to impose tariffs on steel imports, urging the Indian government to push for the removal of long-standing anti-dumping and countervailing duties and to secure exemptions from these restrictive measures.
The latest tariff is expected to slash steel exports to the US by 85 per cent. These tariffs could lead to a massive steel surplus that will likely flood the Indian market, ISA warned.
Agents