Indian stock markets closed lower as global trade tensions and fresh US tariff threats on Europe weighed on investor sentiment. Weak global cues, FII selling, and pressure in broader markets kept benchmarks in the red.
Sharp Decline in Early Trade: Sensex and Nifty Both in the Red
New Delhi: Indian equity markets opened the week on a weak note as rising global trade tensions dented investor confidence. The BSE Sensex fell over 300 points to close near 83,250, while the NSE Nifty50 slipped more than 100 points to settle just above 25,550.
Sentiment weakened after US President Donald Trump announced a 10 per cent tariff on eight European countries, reviving fears of a fresh trade war with the European Union.
The tariff threat sent shockwaves across global markets, triggering caution among investors already wary of geopolitical uncertainty, and Indian equities mirrored the global sell-off as foreign investors trimmed positions.
With a sharp fall of over 300 points, the BSE Sensex ended the trading day around the 83,250 level. Selling pressure was also seen on the NSE Nifty50, which dropped over 100 points to close just above 25,550.
The flaw indicated a wider risk-off attitude among investors, who stayed cautious of growing international trade conflicts. Markets started with even bigger losses first in the early morning. Around 9:30 AM, the Sensex fell about 450 points and the Nifty dropped nearly 150 points.
Some companies ended in the black even if the general market was declining. On the Sensex, shares of IndiGo, Tech Mahindra, Hindustan Unilever (HUL), Kotak Mahindra Bank, and Maruti Suzuki came out as gainers.
On the other hand, index weighting on heavyweights like Reliance Industries, ICICI Bank, Titan, Adani Ports, and Eternal helped to bring the general fall.
Compared to frontline indexes, the wider market saw more significant losses. Emphasizing risk aversion in mid- and small-cap equities, the Nifty Smallcap 250 index dropped 1.1 per cent while the Nifty Microcap 250 fell nearly 1.34 per cent.
Market players emphasized important technical levels for the Nifty50. Immediate assistance was observed around the 25,600 and 25,450 areas; however, resistance was projected near 25,875 followed by greater levels of 26,000 and 26,100. These levels will probably direct short-term market changes in the middle of continuous volatility.
Analysts advised that increased geopolitical risks might cause near-term volatility. After US President Donald Trump alluded at enacting new tariffs on European nations, investor anxieties grew.
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Global signals were still subdued; US markets ended the prior session just barely lower. Mirroring wary mood around, the Nasdaq, S&P 500, and Dow Jones all closed in the red.
