Indian Markets Tumble Amid US Tariff Uncertainty

Global investor sentiment took a hit as US President Donald Trump announced a 25% tariff on steel and aluminium imports, leading to a plunge in Indian stock indices. Market experts warn of prolonged bearish trends due to a weakening rupee, increased import costs, and sluggish domestic demand.

The Indian stock market saw significant losses on Monday following the announcement by US President Donald Trump of a 25% tariff on steel and aluminium imports, which sent ripples through global investor sentiment.

The Sensex plummeted 548.39 points to settle at 77,311.80, with the Nifty dropping 182.85 points to end at 23,381.60. Market breadth was notably weak; only 11 of the Nifty companies advanced, while 39 declined.

Key gainers included Kotak Bank, Bharti Airtel, and HCL Tech, whereas Trent, Power Grid, and Tata Steel recorded losses. The rupee also fell to an all-time low of 87.96 against the US dollar, exacerbating fears of an economic slowdown stemming from Trump's trade policies, which are expected to inflate import costs further and diminish domestic demand.

Vinod Nair of Geojit Financial Services noted that the tariff threats are pushing investors towards safe-haven assets like gold as domestic yields rise. Meanwhile, VLA Ambala of Stock Market Today highlighted potential prolonged bearish phases due to a deteriorating rupee and widening trade deficits.

Additionally, Foreign Institutional Investors (FIIs) were net sellers, contributing to the market's downward trajectory, while Domestic Institutional Investors (DIIs) stepped in with buying efforts, underscoring prevailing market uncertainties. Ambala also pointed out the technical indicators suggesting further bearish trends, warning investors to remain vigilant as global trade tensions continue to mount.