MUMBAI— Indian equity benchmarks slipped into negative territory on Monday, dragged down by selling in IT stocks and rising global trade tensions following new tariff threats from the United States.
The BSE Sensex fell 247.01 points or 0.30%, closing at 82,253.46, down from the previous session’s close of 82,500.47. The index opened higher at 82,537.87 but later declined sharply to an intraday low of 82,010.38 as major IT stocks came under pressure.
The NSE Nifty 50 also closed lower, shedding 67.55 points or 0.27% to end at 25,082.30.
Leading laggards on the Sensex included TCS, Tech Mahindra, Infosys, HCL Tech, Asian Paints, Reliance Industries, Bajaj Finance, Tata Motors, and Kotak Mahindra Bank. On the flip side, Eternal, Adani Ports, Titan, Mahindra & Mahindra, and ITC ended in positive territory.
Across the broader Nifty 50 index, 22 stocks advanced, 27 declined, and one remained unchanged.
“The decline was primarily driven by renewed global trade tensions, as the U.S. announced plans to impose a 30% tariff on most imports from the EU and Mexico starting August 1, despite ongoing negotiations,” said Sundar Kewat of Ashika Institutional Equity.
While frontline indices were under pressure, broader market segments outperformed. The Nifty Smallcap 100 rallied 1.02% (up 191.50 points), and the Nifty Midcap 100 rose 0.70% (up 410.35 points).
Sectorally, Nifty IT was the worst performer, dropping 419 points or 1.11%. However, Nifty Auto, Nifty FMCG, and Nifty Bank managed to close in the green.
The Indian rupee weakened against the U.S. dollar following President Trump’s tariff threats, which triggered risk aversion among global investors and pressured other Asian currencies as well.
“These threats have escalated global trade tensions, leading to increased risk-off sentiment and capital outflows from emerging markets,” noted Dilip Parmar of HDFC Securities.
Adding to market caution, traders are now focused on upcoming CPI inflation data from both India and the U.S., which could influence interest rate outlooks.
“Technically, the Nifty briefly tested the 25,000 mark during the session, which is close to its 50-day moving average,” said Rupak De, Senior Technical Analyst at LKP Securities. “If support holds at the 24,900–24,950 zone, a rebound toward 25,350 is possible. However, a sustained move below 24,900 may trigger deeper correction.” (Source: IANS)
