Sensex Declines Over 800 Points Amid Trump Trade Tariff Concerns
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Synopsis
On January 21, the Indian stock market faced a sharp decrease, surrendering its morning gains and trading significantly lower due to investor apprehension over Trump’s impending trade tariffs. Key indices saw considerable losses, with large-cap stocks contributing to the downturn.
Key Takeaways
- Indian stock markets declined sharply on January 21.
- BSE Sensex dropped by 849 points.
- NSE Nifty fell by 217 points.
- Investor sentiment affected by unclear Trump tariffs.
- Disappointing corporate earnings led to sell-off.
Mumbai, Jan 21 (NationPress) The Indian stock market experienced a significant downturn on Tuesday, relinquishing its early gains and trading considerably lower by midday as investors exercised caution regarding Trump's trade tariffs.
The BSE Sensex experienced a steep drop of 849 points, reaching an intraday low of 76,225, while the NSE Nifty fell by 217 points, landing at 23,128.
Market analysts noted, "Trump 2.0 has commenced with little clarity on the economic policies he may pursue. His inaugural address was explicit on immigration but ambiguous regarding tariffs. The potential for a 25 percent tariff on Canada and Mexico indicates a gradual implementation of the tariff increase policy."
Several large-cap stocks exerted downward pressure on the benchmark indices, including Zomato, Reliance Industries (RIL), State Bank of India (SBI), Bajaj Finance, ICICI Bank, Tata Steel, and Bharti Airtel, all of which were significant losers on the Sensex.
In the broader market, the Nifty midcap and smallcap indices witnessed notable declines, approximately 1.6 percent each. The market sentiment turned overwhelmingly negative, with two stocks declining for every stock that advanced.
Reliance Industries, which holds the largest weight of 11.5 percent in the Sensex, saw its stock decline over 1.5 percent, contributing to 19 percent of the index's overall drop. HDFC Bank, the second-largest contributor, fell by 0.8 percent, accounting for 10 percent of the decline. Stocks of ICICI Bank and SBI also decreased by more than 1 percent each, further exacerbating market weakness.
Investor confidence was impacted by disappointing corporate earnings for the third quarter, with most companies reporting results that fell short of expectations, triggering a sell-off in the markets.
Market observers commented that Trump 2.0 has begun without a clear direction regarding his economic policies.
At the opening bell, the Nifty 50 registered a rise of 0.25 percent while the 30-stock BSE Sensex was up by 0.09 percent, as recorded at 9:18 a.m.
