Mumbai: The Indian stock market closed lower on Thursday, as investors adopted a cautious stance following the announcement of new tariffs by US President Donald Trump. The new tariff structure includes a 10 per cent tax on all US imports, with higher tariffs imposed on countries with a trade surplus. India faces a significant impact, with a 27 per cent tariff now applicable.
Market Performance
The BSE Sensex fell 322.08 points, or 0.42 per cent, to close at 76,295.36. Throughout the day, the index fluctuated between an intraday high of 76,493.74 and a low of 75,807.55. Similarly, the Nifty ended in the red, down 82.25 points, or 0.35 per cent, settling at 23,250.10.
Sectoral Trends
The primary catalyst for today’s decline was the deteriorating global sentiment, worsened by Trump’s announcement of a 26 per cent reciprocal tariff on Indian imports. This led to a cautious approach among investors, noted Sundar Kewat of Ashika Institutional Equity.
Tech stocks were the hardest hit, with major companies like TCS, HCL Tech, Tech Mahindra, Infosys, and Tata Motors seeing declines of up to 4.02 per cent. In contrast, sectors like power, pharma, and cement showed resilience. Power Grid Corporation, Sun Pharma, Ultratech Cement, NTPC, and Asian Paints emerged as top gainers, with gains up to 4.57 per cent.
The Nifty IT index slumped 4.21 per cent, dragged down by Persistent Systems, Coforge, TCS, and Mphasis. Auto, oil & gas, and realty sectors also faced challenges. On the brighter side, pharma stocks performed well, with the Nifty Pharma index rising 2.25 per cent. Additionally, banking, healthcare, FMCG, and consumer durables sectors saw gains of up to 1.94 per cent.
Small cap Stocks Outperform
Despite the overall market downturn, small cap stocks outperformed, with the Nifty Smallcap100 index gaining 0.58 per cent.
Investor Outlook
Market analysts anticipate continued vigilance from investors regarding global developments and their potential impact on market trends. The domestic market initially showed signs of recovery but ended with modest losses after the announcement of the relatively lower 26 per cent tariff on US imports," said Vinod Nair of Geojit Investments Limited.
Although the tariff poses short-term challenges, India's economic resilience and the potential for bilateral trade agreements may help mitigate its overall impact, he added.
The rupee remained flat but traded within a volatile range of 85.75 to 85.35, reflecting market reactions to Trump’s reciprocal tariff policy.
