Sensex and Nifty fell sharply in early trade, tracking losses in US markets and heavy selling in Infosys, amid concerns over Trump’s tariff policies and a possible US recession.
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Equity benchmark indices Sensex and Nifty opened sharply lower on Tuesday, tracking weak trends from US markets and heavy selling pressure on blue-chip stock Infosys.
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The 30-share BSE Sensex fell by 346.23 points, or 0.47%, to 73,768.94 in early trade. Meanwhile, the NSE Nifty declined by 124.80 points, or 0.56%, to 22,335.50, reflecting broad-based weakness in the market.
According to PTI, Infosys, one of the key contributors to the decline, saw significant selling pressure alongside other major laggards, including IndusInd Bank, Mahindra & Mahindra, Zomato, Bajaj Finserv, UltraTech Cement, Tech Mahindra, Adani Ports, Tata Steel, Kotak Mahindra Bank, and HDFC Bank.
On the other hand, Sun Pharmaceuticals, ICICI Bank, Nestle India, Bharti Airtel, NTPC, and Titan were among the few stocks that managed to stay in positive territory despite the broader market weakness.
The market sentiment has been shaken by developments in the US, where stock indices registered sharp losses overnight. The S&P 500 dropped 2.6%, while the tech-heavy Nasdaq plunged by 4% on Monday, reflecting investor anxiety over President Donald Trump's inconsistent tariff policies and rising fears of an economic downturn in the US by the end of the year.
"President Trump's flip-flop tariff policy and the high uncertainty that it has triggered have started impacting US stock markets. Monday's sharp decline in the S&P 500 and Nasdaq reflects the market's response to Trump's tariffs and the growing possibility of a US recession by the year-end," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, according to PTI reports.
Devarsh Vakil, Head of Prime Research at HDFC Securities, echoed these concerns, stating that ongoing trade conflicts and fears of a potential federal government shutdown have added to the market's anxiety. Vakil highlighted that weakening consumer sentiment, slower consumer spending, and tariff risks continue to weigh on the broader economic outlook.
Global market trends were also negative, with major Asian indices trading lower. According to PTI, markets in Tokyo, Shanghai, Hong Kong, and Seoul were all in the red on Tuesday morning, following the sharp losses in US markets.
The pressure on Indian equities was further compounded by activity in the oil market. Global oil benchmark Brent crude was trading flat at USD 69.28 per barrel, providing little support to the market.
According to exchange data cited by PTI, Foreign Institutional Investors (FIIs) sold off equities worth ₹485.41 crore on Monday, while Domestic Institutional Investors (DIIs) were net buyers, picking up equities worth ₹263.51 crore.
The weakness in the market on Tuesday follows a similar decline in the previous session. On Monday, the Sensex fell by 217.41 points to close at 74,115.17, while the Nifty dropped 92.20 points to settle at 22,460.30.
Market analysts expect continued volatility in the coming sessions as investors assess the impact of trade tensions, economic data, and global market trends. With the US economy under pressure and signs of weakness in Asia, market participants are likely to remain cautious until more clarity emerges on the tariff situation and broader economic outlook.
As per PTI reports, the pressure on US stocks and its spillover effect on Asian and Indian markets underscore the fragile state of the global economy, with investors seeking safer assets amid rising uncertainty.
(With inputs from PTI)
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