MUMBAI– Indian equity benchmarks closed sharply lower on Thursday, a day after the United States’ steep 50 per cent tariff on Indian goods came into force, sparking heavy selling across sectors.
The Sensex slipped 705 points, or 0.87 per cent, to settle at 80,080.57, after hitting an intra-day low of 80,013.02. The 30-share index had opened weak at 80,754, compared with the previous close of 80,786.54. Nifty ended at 24,500.90, down 211.15 points, or 0.85 per cent.
“Domestic equities ended lower as pessimism took hold following the tariff implementation, dampening sentiment. While the cotton import duty exemption briefly lifted hopes of policy support, the recovery was short-lived as risk-off mood prevailed,” said Vinod Nair, Head of Research at Geojit Financial Services.
Selling was broad-based, with IT, auto, FMCG, and metals leading the decline, while consumer durables managed to buck the trend on expectations of festive demand and GST rationalisation.
Top laggards from the Sensex included HCL Tech, TCS, Power Grid, Infosys, Hindustan Unilever, HDFC Bank, ICICI Bank, Bharti Airtel, M&M, Trent, Tata Motors, Sun Pharma, NTPC, BEL, Eternal, and SBI. Among the gainers were Titan, L&T, Maruti Suzuki, and Axis Bank.
Sectoral indices reflected the bearish mood: Nifty Financial Services fell 1.20 per cent, Nifty Bank lost 1.16 per cent, Nifty FMCG slipped 1.02 per cent, and Nifty IT dropped 1.59 per cent. Broader markets also underperformed, with Nifty Small Cap 100 and Midcap 100 both tumbling 1.45 per cent.
The rupee weakened further, pressured by persistent foreign institutional outflows and concerns about India’s growth outlook and fiscal deficit. “The 50 per cent US tariff has injected uncertainty into export prospects. Until clarity emerges through negotiations or new trade deals, markets are likely to stay cautious,” said Jateen Trivedi of LKP Securities, adding the rupee is expected to remain in a range of 87.25–88.25 in the near term. (Source: IANS)
