Sensex Drops Over 1,100 Points Due to US Tariff Fears
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Synopsis
The Indian stock market faced a steep decline on Tuesday, driven by fears of impending US reciprocal tariffs affecting the IT and financial services sectors. The Sensex dropped over 1,100 points, indicating significant market volatility amid global economic concerns.
Key Takeaways
- Sensex down 1,136.25 points or 1.47%
- IT and financial services sectors were the main contributors to the decline
- Midcap and small-cap stocks also faced selling pressure
- Experts predict volatility but maintain a positive long-term outlook for India
- Gold may act as a stabilizer in investment portfolios
Mumbai, April 1 (NationPress) The major Indian indices saw a significant decline on Tuesday, primarily influenced by the IT and financial services sectors, amid worries regarding the forthcoming US reciprocal tariffs set to take effect on April 2.
As of 11:05 am, the Sensex had fallen by 1,136.25 points or 1.47 percent, reaching 76,260.90, while the Nifty was down 283.70 points or 1.21 percent, at 23,231.20.
In addition to large-cap stocks, declines were observed in midcap and small-cap sectors. The Nifty midcap 100 index dropped by 359.10 points or 0.69 percent, settling at 51,313.35, and the Nifty smallcap 100 fell by 99.35 points or 0.61 percent, now at 15,997.15.
Sector-wise, the Nifty IT index plummeted by more than 2 percent. The financial services, pharmaceuticals, metals, real estate, and automotive sectors were among the biggest underperformers.
Within the Sensex constituents, IndusInd Bank, Zomato, Nestle, ITC, and Bharti Airtel emerged as the top gainers. Conversely, Bajaj Finserv, Infosys, HDFC Bank, Axis Bank, Bajaj Finance, HCL Tech, TCS, and Sun Pharma were the chief losers.
Krishna Appala from Capitalmind Research mentioned that apprehension persists due to global headwinds.
“The anticipated tariff announcements and their economic repercussions are critical factors affecting market sentiment,” Appala noted.
Looking forward, experts predict near-term volatility stemming from global influences; however, India’s robust domestic market is expected to provide a positive long-term outlook. In this scenario, assets like gold could serve as a stabilizing factor within investment portfolios rather than merely a tactical option.
Meanwhile, almost all Asian markets exhibited gains. The markets in Shanghai, Tokyo, Seoul, Bangkok, and Hong Kong were trading higher.
The US markets rebounded from a seven-month low on Monday, closing with a one percent increase.
After experiencing buying activity for six consecutive sessions, foreign institutional investors (FIIs) turned net sellers on March 28, offloading equities worth Rs 4,352 crore. In contrast, domestic institutional investors (DIIs) continued their buying spree, purchasing equities totaling Rs 7,646 crore on the same day.
