Sensex Down 320 Points, Nifty Falls Below 25,200: Trade Tensions and Profit Booking Weigh on Markets

Indian stock markets opened lower on Monday, snapping a two-day gain as investors reacted to global cues and domestic profit booking. The Sensex was down 320.79 points (0.39%) at 82,180.03, while the Nifty 50 slipped 93.45 points (0.37%) to 25,191.90 around 10:04 am.

Market Performance Snapshot

• Advancers: 1,294 shares
• Decliners: 2,154 shares
• Unchanged: 170 shares
• Midcap & Smallcap indices: down ~0.5%

Sector-wise, IT, metals, realty, and consumer durables led the losses, while auto stocks bucked the trend and traded higher.

US-China Tariff Concerns

Markets reacted to rising global uncertainty following U.S. President Donald Trump's announcement of additional tariffs imports from China. Key points from the global impact:

• Trump intends to implement a 100% tariff oncertain Chinese goods.
• U.S. tech stocks, including Nvidia, Tesla, Amazon, and AMD, fell sharply.
• Indian IT stocks mirrored the global trend, with the Nifty IT index down over 0.65% at 35,377.55.
• Infosys dropped more than 1%, emerging as one of the day’s top losers.

The development raised concerns about a potential escalation in global trade tensions, affecting investor sentiment worldwide.

Domestic Factors: Profit Booking

Profit booking played a significant role in the market decline:

• Last week, Sensex gained 1,253 points (~1.6%)
• Nifty 50 rose over 391 points (~1.6%)
• Nifty had crossed the 25,300 mark for the first time since late September

Elevated levels prompted investors to book profits, contributing to downward pressure on stocks.

Rising Volatility: India VIX

Investor caution was evident as the India VIX surged over 11% to 11.25, signaling increased near-term market volatility. This rise suggests a cautious sentiment among traders amid global uncertainties.

Shift to Safe-Haven Assets: Gold Prices

Amid equity market weakness, investors shifted towards safer assets like gold:

• Gold futures (MCX, December) hit a lifetime high of Rs 1,23,680 per 10 grams.
• Other contracts also recorded gains of over 1%.

This movement indicates a preference for risk-free investments during periods of market stress, further impacting stock indices.

Key Takeaways

• Sensex and Nifty slipped due to global trade concerns and domestic profit booking.
• IT, metals, and realty sectors were most affected; auto stocks showed resilience.
• Rising India VIX reflects investor caution.
• Gold prices hit record highs as safe-haven demand rose.

The market’s movement today reflects a combination of global trade tension, profit booking, and rising volatility, while sectors with domestic consumption themes showed relative strength.