Stock Market Ends Lower as Investors React Cautiously to US Tariffs
The Indian stock market closed on a negative note on Thursday, as investors remained cautious following the announcement of new tariffs by US President Donald Trump.
Mumbai: The Indian stock market closed on a negative note on Thursday, as investors remained cautious following the announcement of new tariffs by US President Donald Trump.
The US has introduced a new tariff structure that includes a 10% tax on all imports and higher tariffs on countries with a trade surplus. As a result, India is now facing a 27% tariff, sparking concern among market participants.
Market Performance Overview
The BSE Sensex fell 322.08 points, or 0.42%, closing at 76,295.36. During the session, the index fluctuated between an intraday high of 76,493.74 and a low of 75,807.55. The Nifty 50 index also ended in the red, dropping 82.25 points, or 0.35%, to close at 23,250.10.
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Impact of US Tariff Announcement
“The primary catalyst for today’s decline was the deteriorating global sentiment, compounded by US President Trump’s announcement of a 26% reciprocal tariff on Indian imports, prompting investors to adopt a cautious approach,” said Sundar Kewat of Ashika Institutional Equity.
Also Read: India’s GDP Growth Projected at 6.7% for FY26, Cyclical Recovery Expected
Sector-wise Performance
Tech stocks were hit hard, with major players like TCS, HCL Tech, Tech Mahindra, Infosys, and Tata Motors falling by as much as 4.02%. The IT sector emerged as the worst performer of the day, with the Nifty IT index dropping by 4.21%.
On the flip side, stocks in the power, pharma, and cement sectors gained. Power Grid Corporation, Sun Pharma, Ultratech Cement, NTPC, and Asian Paints saw an increase of up to 4.57%.
Smallcap Stocks Outperform
Despite the overall decline in the broader market, smallcap stocks showed resilience. The Nifty Smallcap 100 index gained 0.58%, outperforming the large-cap stocks.
Analyst Insights
“Although the tariff presents short-term challenges, India’s economic resilience and its bilateral trade agreements may help mitigate the overall impact,” said Vinod Nair of Geojit Investments Limited. Investors will likely continue monitoring global developments to assess their impact on market trends.
The Currency Market
The Indian Rupee remained flat during the day, trading in a volatile range between 85.75 and 85.35, reflecting market reactions to Trump’s tariff policy.
As market analysts remain watchful of the global landscape, investors are expected to adopt a cautious stance in the coming days. The ongoing developments in US trade policies will likely continue influencing market performance.
