Mumbai– Indian equity markets closed sharply lower on Thursday, with both Sensex and Nifty retreating nearly 1 percent as investor sentiment weakened following the implementation of 50 percent U.S. tariffs on Indian goods.
The Sensex ended the day at 80,080.57, down 705 points or 0.87 percent. The 30-share index opened weak at 80,754 against the previous close of 80,786.54 and slipped further to hit an intraday low of 80,013.02.
The Nifty also lost ground, closing at 24,500.90, down 211.15 points or 0.85 percent.
“Domestic equities ended lower as pessimism took hold following the implementation of tariffs on Indian goods, dampening investor sentiments. While the cotton import duty exemption briefly lifted hopes of policy support to counter tariff impacts, triggering a short-lived intraday recovery, investor mood remained fragile, with large caps declining and mid and small caps underperforming amid risk-off sentiment,” said Vinod Nair, Head of Research, Geojit Financial Services.
Most sectors, including Auto, IT, FMCG, and Metals, ended in the red as investors booked profits after recent gains. Consumer durables outperformed, buoyed by expectations of festive demand and GST rationalization, Nair added.
HCL Tech, TCS, Power Grid, Infosys, Hindustan Unilever, HDFC Bank, ICICI Bank, Bharti Airtel, Mahindra & Mahindra, Trent, Tata Motors, Sun Pharma, NTPC, BEL, and SBI were among the top losers in the Sensex pack. Titan, L&T, Maruti Suzuki, and Axis Bank bucked the trend and closed higher.
Sectoral indices also weakened. Nifty Fin Services fell 312.30 points or 1.20 percent, Nifty Bank slipped 630.10 points or 1.16 percent, Nifty FMCG declined 574.05 points or 1.02 percent, and Nifty IT dropped 574.45 points or 1.59 percent. Nifty Auto ended 136.80 points lower, down 0.54 percent.
Broader markets mirrored the decline, with Nifty Small Cap 100 and Nifty Midcap 100 both shedding 1.45 percent, and Nifty 100 losing 0.93 percent.
The rupee weakened further as selling in capital markets intensified. Foreign institutional investors continued to pare exposure amid concerns over India’s growth outlook and fiscal deficit.
“The imposition of a 50 percent U.S. tariff has raised uncertainty over exports, weighing on overall sentiment. Until there is clarity on alternatives, either through negotiations with the U.S. or fresh trade agreements, investors are likely to remain cautious,” said Jateen Trivedi of LKP Securities.
He added that the rupee is expected to stay under pressure in the near term, trading in a range of 87.25 to 88.25. (Source: IANS)
