For the fourth day in a row, the Sensex closed about 550 points lower, and the Nifty closed the day 0.80% lower than it had started.
For the fourth straight session, benchmark indices the Sensex and Nifty ended the day lower. The Nifty ended more than 178 points, or 0.76%, lower at 23,381.60, while the Sensex closed almost 550 points, or 0.70%, lower at 77,311.80.What caused the decrease in the indices?
Concerns about Trump tariffs: US President Donald Trump declared his intention to apply 25% tariffs to all imports of steel and aluminum. In addition to intensifying trade tensions, this made traders even more skeptical about the world's commodities prices. Additionally, he made a suggestion that the US might apply reciprocal tariffs to nations who impose import taxes on the US.after he previously ordered Canada, Mexico, and China to pay comparable taxes. He had temporarily suspended the taxes levied against Mexico and China.
Weak rupee: Days after breaking through the 87 barrier against the US dollar for the first time, the Indian rupee also fell 45 paise to a record low of 87.85. The main reason for this was that the dollar appreciated following Trump's tariff announcement, hitting 108 on the dollar index.
Q3 profits: Several Indian firms' October–December 2024 quarter corporate earnings have failed to improve market mood, with companies such as ITC, Swiggy, and NHPC reporting a drop in net profit.
Major metal stocks performed among the poorest, and they drag indices. The US President Trump's tariff statement, which caused the Nifty Metal index to drop 2.94%, was probably the cause of this.
Rising bond yields: On Monday, 10-year India Government Bond yields increased 2% to 6.83%, indicating that investors are becoming less willing to take on risk and are shifting from stocks to safer investment options like bonds.
What was the performance of the markets?
The top losers on the Sensex and Nifty, which closed at a 4.5% decline, were Power Grid Corporation of India, Tata Steel, Zomato, Titan, Bajaj Finance, ONGC, Adani Enterprises, and NTPC. Even the biggest winners of the day, such as Kotak Mahindra Bank, could only increase by 1.74%.
192 Sensex stocks hit their 52-week lows as compared to only 114 stocks that hit their 52-week highs. Meanwhile, a staggering 127 Nifty stocks hit the lower limits while only 24 Nifty stocks hit 52-week highs.
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