Cautious Indian Market Dips Amid Global Trade Tensions

The Indian stock market closed in the red, as cautious investor sentiment persisted due to impending US tariffs. Sensex fell by 96.01 points, and Nifty decreased by 36.65 points. Despite a broader market upswing, global trade tensions loom, with China imposing retaliatory tariffs on US products.

On Monday, the Indian stock market closed in the red amid cautious investor sentiment ahead of former US President Donald Trump's new tariffs, set to start on Tuesday. The BSE Sensex fell by 96.01 points to 72,989.93, and the NSE Nifty declined by 36.65 points to 22,082.65.

In the Nifty index, 22 stocks advanced while 28 declined. Prominent gainers were SBI, BPCL, BEL, Shriram Finance, and Adani Enterprises. Notable losers included Bajaj Auto, Hero MotoCorp, Bajaj Finserv, HCL Tech, and Eicher Motors. Vinod Nair from Geojit Financial Services noted that despite a recovery from earlier lows, negative global cues kept the market subdued. Small-cap stocks, however, saw value-driven gains.

VLA Ambala, Co-Founder of Stock Market Today, emphasized India's market volatility in the trade war context, pointing to significant FII outflows and potential impacts on SIPs and domestic funds. China's retaliatory tariffs on US agriculture add to the tension. With the benchmark indices dropping about 15% from six-month highs, concerns grow over long-term capital gains tax, a weakening rupee, and GDP growth signals.

Ajit Mishra from Religare Broking highlighted mixed sectoral trends, with energy, metal, and banking stocks showing gains, countered by the underperformance of auto and IT sectors. The small-cap stock rebound enhanced market breadth slightly as mid-caps stabilized. Global trade uncertainties and economic challenges keep market participants on alert for further tariff impacts on India's growth and investments.

(With inputs from agencies.)