Benchmark indices Sensex and Nifty closed within the crimson in the present day, marking the fourth consecutive session of decline. Whereas Sensex closed practically 550 factors or 0.70% decrease at 77,311.80, Nifty ended over 178 factors or 0.76% decrease at 23,381.60.
Sensex and Nifty continued to bleed for the fourth consecutive session on Monday(Bloomberg) What led to the indices’ decline?
Trump tariff issues: US President Donald Trump introduced plans to impose 25% tariffs on all metal and aluminum imports. This not solely escalated commerce tensions, which additional elevated skepticism amongst merchants on international commodity costs. He additionally hinted that US could impose reciprocal tariffs on nations that tax US imports, following his earlier order to impose related taxes on China, Mexico and Canada. He’d imposed non permanent pause on the taxes imposed on China and Mexico.
Additionally learn: Trump to impose new 25% tariff on US metal, aluminum imports
Weak rupee: The Indian rupee additionally depreciated 45 paise to a document low of 87.85 towards the US greenback, days after it had crossed the 87 mark towards the dollar for the primary time ever. This was primarily as a result of the greenback strengthened, rising to 108 on the greenback index, over Trump’s tariff announcement.
Q3 earnings: Company earnings reported for the October-December 2024 quarter by a number of Indian firms have been unsuccessful in lifting market sentiments, with firms like ITC, Swiggy and NHPC reporting a decline in web revenue.
Additionally learn: Gold costs soar to document excessive amid Trump tariff fears
Steel shares drag indices: Main steel shares had been among the many worst performers. This was a possible results of US President Trump’s tariff announcement, following which the Nifty Steel index dipped 2.94%.
Rising bond yields: Yields on 10-year India Authorities Bonds rose 2% to six.83% on Monday, reflecting danger averse nature of traders as they’re transferring in direction of safer funding choices, like bonds, as an alternative of equities.
Additionally learn: Inventory market crash in the present day: Sensex down over 650 factors, Nifty drops by over 200
How did markets carry out?
Energy Grid Company of India, Tata Metal, Zomato, Titan, Bajaj Finance, ONGC, Bajaj Finance, Adani Enterprises and NTPC had been among the many prime losers on each Sensex and Nifty, falling as much as 4.5% at shut. In the meantime, even the day’s prime gainers like Kotak Mahindra Financial institution had been capable of rise solely as a lot as 1.74%.
192 Sensex shares hit their 52-week lows as in comparison with solely 114 shares that hit their 52-week highs. In the meantime, a staggering 127 Nifty shares hit the decrease limits whereas solely 24 Nifty shares hit 52-week highs.