Indian Stock Market Closes in the Red Amid US Tariff Concerns
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Synopsis
On April 9, the Indian stock market experienced a downturn, influenced by global cues and fears related to US trade tariffs. Despite a repo rate cut by the Reserve Bank of India, market sentiment remained subdued.
Key Takeaways
- Sensex fell by 379.93 points.
- Nifty decreased by 136.70 points.
- Top gainers included Nestle India and Hindustan Unilever.
- Major losses were reported in Nifty IT and Pharma sectors.
- Markets closed on April 10 for Mahavir Jayanti.
Mumbai, April 9 (NationPress) The Indian stock market closed on a negative note on Wednesday, influenced by weak global signals and apprehensions regarding US trade tariffs, despite the Reserve Bank of India (RBI) reducing the repo rate by 25 basis points.
The RBI's monetary policy committee (MPC) lowered the repo rate to 6 percent from 6.25 percent, aiming to bolster economic growth amid global uncertainties. Alongside the rate cut, the central bank shifted its policy stance from ‘accommodative’ to ‘neutral.’
Nonetheless, in light of tariff anxieties, the Sensex dropped by 379.93 points, or 0.51 percent, ending at 73,847.15. Similarly, the Nifty concluded 136.70 points lower at 22,399.15, down 0.61 percent.
Among the gainers in the Sensex pack were Nestle India, which saw over a 3 percent increase, Hindustan Unilever rising 2.52 percent, and Titan finishing the session with a 1.66 percent gain.
Other gainers included Adani Ports, Power Grid, Asian Paints, and ITC. On the flip side, the top losers were State Bank of India (SBI), Tech Mahindra, Tata Steel, and Larsen and Toubro, with some stocks plummeting by as much as 3.4 percent.
The broader market also faced selling pressure. The BSE Midcap index fell by 0.73 percent, while the Smallcap index dropped 1.08 percent.
Among sectoral indices, substantial losses were noted in Nifty IT, Pharma, PSU Bank, Realty, and Healthcare. These sectors suffered declines ranging from 1.11 percent to 2.25 percent.
“Global financial markets are experiencing renewed selling pressure due to the implementation of reciprocal tariffs,” stated Vinod Nair of Geojit Investments Limited.
He further added that in India, the reduction in the repo rate coupled with the transition to an accommodative policy stance is viewed as a positive measure.
“However, it has had minimal effect on overall market sentiment, as global recessionary risks loom large,” Nair remarked.
Market sentiment took a downturn following the announcement of new US tariffs on China, leading to a gap-down opening followed by a largely range-bound session, according to Ajit Mishra of Religare Broking Limited.
The markets will be closed on April 10 in observance of Mahavir Jayanti.
