Mumbai Mumbai: Indian stock markets closed with a massive drop in Monday’s session as US President Donald Trump’s announcement of imposing 25 per cent tariff on steel and aluminium imports into the US hit global investor sentiment.The benchmark Sensex closed 548.39 points lower at 77,311.80, while the Nifty dropped 182.85 points to 23,381.60.
The broader market sentiment remained weak, with only 11 Nifty companies gaining while 39 declined. Kotak Bank, Bharti Airtel, Britannia, Tata Consumer Products and HCL Tech were the top gainers, while Trent, Power Grid, Tata Steel, Titan and ONGC were the worst performers of the session.
The Indian rupee hit an all-time low of 87.96 against the US dollar as fears of an economic slowdown after Trump’s trade policy changes raised concerns. Market experts believe that Indian equities may remain bearish for a long time due to the depreciating rupee, rising import costs and subdued domestic demand.
Vinod Nair, Head of Research at Geojit Financial Services, said, “US tariff threats continue to weigh on market sentiment. Domestic yields are rising, as investors remain cautious on risky assets and are shifting their investments to safer assets like gold. On the earnings front, companies are facing downward revisions in estimates due to a weak demand environment, margin pressures and a cautious outlook in the near term.”
VLA Ambala, Research Analyst and Co-Founder at Stock Market Today, said, “Given factors such as depreciating rupee, tariff threats, subdued domestic demand, expensive imports and exports, and widening trade deficit, the Indian economy may continue to face a slowdown amid slowing GDP growth.”
VLA Ambala, Research Analyst and Co-Founder at Stock Market Today, said, “Given factors such as depreciating rupee, tariff threats, subdued domestic demand, expensive imports and exports, and rising trade deficit, the Indian economy may continue to face a slowdown amid slowing GDP growth.” “However, key indices such as Nifty and Sensex have already fallen by up to 12 per cent this quarter, and current market conditions indicate that they could fall even further. Such developments could have long-term implications on companies and GDP growth,” he said.
Foreign institutional investors (FIIs) remained net sellers, selling shares worth Rs 10,179.40 crore, while domestic institutional investors (DIIs) attempted to support the market by buying shares worth Rs 7,274.05 crore. The outflow of foreign funds underlines the uncertainty over India’s growth path amid global headwinds.
From a technical perspective, the Nifty formed a bearish Marubozu candlestick pattern, indicating strong selling pressure. According to Ambala, the key support levels for the index in the next session are between 23,200 and 23,050, while resistance is expected between 23,410 and 23,480.
Investors are expected to remain cautious in the coming sessions as global trade tensions escalate and economic concerns deepen. The focus will now be on how global markets react to the tariff announcements and whether any policy intervention from the Indian government or central bank can stabilize sentiment.
