Indian benchmark indices Nifty and Sensex extended their downward trend on Tuesday, with investors jittery ahead of the looming tariff deadline set by former US President Donald Trump. The sell-off was led by the Nifty IT and Pharma sectors, both highly vulnerable to potential trade disruptions, followed closely by financial stocks.
The India VIX, a key measure of market volatility, spiked 8 per cent to approach the 14-mark, reflecting heightened investor anxiety.
At the close of trading, the Sensex plummeted 1,390.41 points, or 1.80 per cent, to settle at 76,024.51, while the Nifty tumbled 353.65 points, or 1.50 per cent, ending at 23,165.70. Advancing stocks outnumbered decliners with 2,668 shares rising, 1,217 falling, and 140 remaining unchanged.
Sectorial Update
The Nifty IT and Pharma indices, both heavily dependent on the US markets, plunged 2.5 per cent and 1.8 per cent respectively, leading the broader market decline. Banking stocks also felt the heat, with HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and SBI dragging the Nifty Bank index down by over 1 per cent.
Other sectors weren’t immune either, as FMCG, Metals, and Infrastructure indices each shed around 1 per cent. The Nifty Auto index dipped 0.5 per cent, influenced by the release of March sales figures from major automakers.
Also Read: Bombay High Court Extends Interim Stay On FIR Against Ex-SEBI Chairperson And 5 Others
Broader Market Update
The broader market mirrored this downward trend on Tuesday, with the Nifty Midcap 100 and Smallcap 100 indices falling 0.8 per cent and 0.5 per cent, respectively. Despite a strong rally of 10-14 per cent in these indices this year, analysts caution that elevated valuations could signal more challenges ahead.
Market analysts warn that Trump’s tariff measures could intensify inflationary pressures, restricting the US Federal Reserve’s ability to adjust interest rates effectively. His recent decision to impose a 25 per cent tariff on foreign cars and auto parts has raised concerns about broader trade barriers.
Doonited Affiliated: Syndicate News Hunt
This report has been published as part of an auto-generated syndicated wire feed. Except for the headline, the content has not been modified or edited by Doonited
