Markets: Trump tariffs roil world bourses; Sensex, Nifty tank 3% on “Black Monday”
Virendra Pandit
New Delhi: As the world economy and markets plunged southward after US President Donald Trump’s latest round of ‘reciprocal tariffs,’ the Indian equity markets on “Black Monday” markets reacted negatively with Sensex and Nifty sinking precipitously by 3 percent, the media reported.
Even as anti-Donald Trump demonstrations across the US, Europe, and other places, intensified, the US President remained firm on going ahead with what he called reforms, initiated on the “Liberation Day” (April 2), and implement his decisions, ignoring economists’ dire warning that a 1930-type Global Recession could hit the planet.
Amid the spiralling turmoil worldwide, the Indian rupee opened 35 paise down on Monday at 85.59 per USD. The Indian unit had closed at 85.2350 last Friday, briefly strengthening beyond the 85 mark to 84.96/USD. The rupee, after touching a low/high of 85.7025/85.5550, is currently trading at 85.6350, the reports said.
On Monday, the benchmark BSE Sensex plunged 2,226 points, or 2.9 percent, to close at 73,137.90, while the broader NSE Nifty 50 tumbled 742.85 points, or 3.2 percent, to 22,161.60, as global markets reeled under pressure from the Trump administration’s intensifying tariff offensive.
Of the 4,225 stocks traded on the BSE on the opening day of this week, 587 advanced, 3,494 declined, and 144 remained unchanged. As many as 59 stocks touched 52-week highs, while 775 hit 52-week lows.
Also, 184 stocks were locked in the upper circuit and 542 in the lower circuit. Barring the FMCG index, which declined by 1.10 percent, all Nifty sectoral indices ended in the red, led by steep losses in Nifty Metal (-6.75 percent), Nifty Realty (-5.69 pc), Nifty Auto (-3.78 pc), Nifty Oil & Gas (-2.79 pc), Nifty Pharma (-2.75 pc), and Nifty Consumer Durables (-2.20 pc).
Benchmark Indian equity indices plunged sharply, weighed down by a broad-based sell-off across counters, settling in the red for the third consecutive session. All 30 constituent stocks of the Sensex settled in red, with Tata Steel being the top laggard, ending down by 7.16 percent.
The market decline was triggered by rising concerns over growth and the fallout from US tariffs, which deepened the prevailing risk-off sentiment. This was led by reciprocal tariff announcements by Trump and retaliatory measures taken by China in what is escalating as a global trade war and protectionism, ending the long-held spirit of globalization.
The Nifty Midcap100 and Smallcap100 indices also settled with losses of over 3 per cent each.
Among sectoral indices, Nifty Metal and Realty were the top laggards, ending down by 6.75 per cent and 5.69 per cent, respectively. Other sectoral indices, including Nifty IT, Bank, Auto, and Financial Services, ended with losses of up to up 4 per cent.
Half of the 30 Sensex stocks plunged over 5 percent on the BSE in the intraday trade on Monday, as risk-averse sentiment gripped Dalal Street.
Among the hardest hit stocks, the prominent ones were Tata Steel (11.5 percent), Tata Motors (10.3 percent; at 52-week low), Infosys (9.9 percent), IndusInd Bank (9.4 percent), Adani Ports (9.3 percent), M&M (9.1 percent), L&T (8.9 percent), Tech M (8.4 percent), HCL Tech (8.3 percent), Kotak Mahindra Bank (8.1 percent), Sun Pharma (8.1 percent), RIL (7.4 percent; at 52-week low), TCS (7.2 percent; at 52-week low), Bajaj Finance (7.1 percent), and Axis Bank (5.1 percent), which all dropped between 5 percent 12 percent in the intraday trade.
