Mumbai— Indian equity markets closed lower on Thursday as investor sentiment turned cautious following the announcement of new US tariffs by President Donald Trump. The new structure includes a 10 per cent base tariff on all US imports, with significantly higher levies on countries running trade surpluses. India is now set to face a 27 per cent tariff under this policy.
The BSE Sensex declined by 322.08 points, or 0.42 per cent, to settle at 76,295.36. It traded within a wide range during the session, hitting an intraday high of 76,493.74 and a low of 75,807.55.
The NSE Nifty also ended in the red, falling 82.25 points, or 0.35 per cent, to close at 23,250.10.
“The key driver behind today’s decline was weakening global sentiment, further dampened by the US President’s announcement of a 26 per cent reciprocal tariff on Indian goods,” said Sundar Kewat, analyst at Ashika Institutional Equity.
“This led to a cautious stance among investors, particularly in sectors heavily reliant on exports,” he added.
Technology stocks led the market losses, with TCS, HCL Tech, Tech Mahindra, Infosys, and Tata Motors dropping as much as 4.02 per cent.
The Nifty IT index was the worst-performing sectoral index of the day, falling 4.21 per cent, weighed down by names like Persistent Systems, Coforge, TCS, and Mphasis.
Other underperforming sectors included auto, oil & gas, and real estate.
On the flip side, select defensives and infrastructure stocks bucked the trend. Power Grid Corporation, Sun Pharma, Ultratech Cement, NTPC, and Asian Paints emerged as the top gainers, rising up to 4.57 per cent.
Pharmaceutical stocks were a bright spot, with the Nifty Pharma index climbing 2.25 per cent. Gains were also seen in banking, FMCG, healthcare, and consumer durables, which rose as much as 1.94 per cent.
Despite the broader market weakness, smallcap stocks outperformed, with the Nifty Smallcap 100 index gaining 0.58 per cent, indicating selective investor interest in mid- and small-sized companies.
“The domestic market initially showed signs of recovery but reversed course after the announcement of the new US tariff structure,” said Vinod Nair, Head of Research at Geojit Financial Services.
“While the higher tariffs pose short-term headwinds, India’s strong economic fundamentals and the possibility of a bilateral trade agreement could cushion the overall impact,” he added.
The rupee ended flat, trading in a volatile band between 85.75 and 85.35 against the US dollar as markets digested the potential ramifications of the US administration’s reciprocal tariff policy. (Source: IANS)
