Sensex and Nifty News: Indices Decline as Tariff Worries Weigh on Market Sentiment

Market Performance

The Indian stock market witnessed a sharp downturn on Tuesday, as both benchmark indices closed in the red.

• Sensex dropped by 308.47 points or 0.38%, closing at 80,710.25.
• Nifty slipped by 73.20 points or 0.30%, settling at 24,649.55.

Weakness in oil and gas stocks, combined with ongoing foreign investor outflows, contributed to the negative momentum.

Main News: Key Triggers Behind the Market Decline

1. Trump's Tariff Remarks Shake Investor Confidence

Investor sentiment weakened following former US President Donald Trump’s threat to hike tariffs on Indian imports.

• Trump criticized India’s purchase and resale of Russian oil, calling it a profit-making tactic.
• In a social media post, he announced plans to "substantially raise tariffs" on Indian imports.
• This unexpected geopolitical development raised concerns over potential trade friction between India and the US.

The Indian government responded by labeling the remarks as “unjustified and unreasonable”, affirming its intent to defend national economic interests.

2. Persistent FII Outflows Add Pressure

• Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,566.51 crore on Monday.
• This sustained selling trend is undermining domestic investor confidence and market stability.

3. Rupee Weakens Amid Tariff Concerns

• The Indian rupee depreciated by 29 paise, settling at 87.95 against the US dollar.
• Currency experts attributed the fall to mounting global tensions, including Trump’s tariff warning.

4. Oil and Gas Stocks Drag the Market

• The Nifty Oil & Gas index dropped nearly 1%.
• Out of 15 index constituents, 12 closed in the red, indicating widespread profit booking in the sector.

5. RBI Policy Outcome in Focus

• Investor attention is now on the RBI’s Monetary Policy Committee (MPC) decision, expected on Wednesday.
• Although inflation is at a six-year low, policy signals remain cautious.

Company Details: Notable Laggards in Trade

Several heavyweight stocks contributed to the market’s decline:

• Infosys
• Bharat Electronics
• Asian Paints
• ICICI Bank
• Adani Enterprises

These companies were among the top losers in the Nifty pack, amplifying the downtrend.

Summary of the Article

The Indian stock market faced a pullback on Tuesday, with Sensex falling over 300 points and Nifty slipping below the 24,650 mark.

Multiple factors contributed to the market downturn, including:

• Donald Trump’s tariff warning on Indian goods.
• Continued FII equity outflows worth over ₹2,500 crore.
• Depreciation of the rupee to 87.95 per USD.
• Selling pressure in oil and gas stocks.
• Cautious sentiment ahead of the RBI policy outcome.

The broader market sentiment remains under stress as investors assess the impact of global political developments and ongoing capital outflows.