MUMBAI– Indian equity markets ended sharply lower on Tuesday as investors turned cautious ahead of the U.S. imposing 50 percent tariffs on Indian goods, set to take effect Wednesday.
The Sensex closed at 80,786.54, down 849.37 points, or 1.04 percent. The 30-share index opened weak at 81,377.39 against the previous close of 81,635.91 and extended losses through the session, touching an intraday low of 80,685.98.
The Nifty settled at 24,712.05, down 255.70 points, or 1.02 percent.
“Domestic market sentiment turned cautious as the U.S. penalty tariff deadline expires tomorrow. The persistent depreciation of the Indian currency is adding pressure and may further impact foreign institutional inflows,” said Vinod Nair, Head of Research at Geojit Investments Limited.
Nair added that investors are closely watching the government’s moves to support economic growth, including possible GST revisions and targeted relief for industries affected by tariffs. Broad selling was seen across most sectors, with the exception of FMCG stocks, which rose on expectations of stronger consumption.
Among Sensex constituents, Sun Pharma, Tata Steel, Trent, Bajaj Finance, Bajaj Finserv, Tech Mahindra, Axis Bank, Titan, Mahindra & Mahindra, L&T, Bharti Airtel, NTPC, BEL, ICICI Bank, SBI, HCL Tech, and HDFC Bank closed in the red. Hindustan Unilever, Maruti Suzuki, and ITC were the top gainers.
Sectoral indices largely traded lower. Nifty Bank fell 688.85 points, or 1.25 percent; Nifty Financial Services dropped 354.30 points, or 1.35 percent; Nifty Auto slipped 103.10 points, or 0.41 percent; and Nifty IT shed 216.85 points, or 0.60 percent. Nifty FMCG gained 505.35 points, or 0.91 percent.
Broader indices also declined. Nifty Smallcap 100 dropped 362.95 points, or 2.03 percent; Nifty Midcap 100 fell 935.30 points, or 1.62 percent; Nifty 100 dipped 276.20 points, or 1.08 percent; and Nifty Next 50 slid 911 points, or 1.35 percent.
The rupee extended losses, slipping 0.18 to trade near 87.75 under renewed pressure.
“The U.S. move is expected to weigh on India’s export outlook, limiting any sustained recovery in the currency. While crude prices have softened by around 1.5 percent, providing some relief on the import bill, the tariff impact has overshadowed those gains,” said Jateen Trivedi of LKP Securities.
He added that foreign investor outflows and continued dollar demand are limiting the rupee’s upside. The trading range is now projected between 87.25 and 88.25, with risks skewed toward further depreciation. (Source: IANS)
