US Tariffs Pressure Indian Markets Across Sectors

Market Downturn Amidst US Tariff Implementation

The Indian stock markets witnessed significant volatility on Thursday, driven by the imposition of increased US tariffs on Indian goods.

• Investor sentiment was negatively impacted, resulting in broad market declines.
• The BSE Sensex closed at 80,080.57, down nearly 706 points (0.87%).
• The NSE Nifty settled at 24,500.90, down 211 points (0.85%).
• Market capitalization decreased by approximately Rs 4.14 lakh crore.

Sectoral Impact and Selling Pressure

The new tariff regime triggered widespread selling pressure across various sectors.

• Banks were significantly affected.
• Most sectors including Auto, IT, FMCG, Metals, PSU Banks, and Pharma experienced losses of around 0.7% to 1.5%.
• The Nifty IT and Realty indices led the decline, each falling approximately 1.5%.
• Midcap and smallcap stocks showed higher risk aversion compared to large caps.

Consumer Durables was the only sector that showed resilience, possibly due to:

• Expectations of GST rationalisation.
• Strong festive demand.

Market Analysis and Key Factors

Market analyst Rahul Sharma highlighted volatility and crucial technical levels.

• The Nifty's 24,600 mark was critical for short-term direction.
• Foreign Institutional Investors were reportedly taking short positions.

Intraday Recovery and Key Gainers:

• Some recovery was observed as investors awaited domestic institutional buying and discounted tariff concerns.
• Major gainers included Hero MotoCorp, Adani Enterprises, Titan Company, and Asian Paints (up to 2% intraday).

Outlook and Cautious Approach

The combination of adverse US trade policies, foreign fund outflows, and weak global cues weighed heavily on Indian equities.

• A cautious approach is suggested as the markets absorb these developments.