The Indian equity market experienced a sharp decline on Tuesday, with the benchmark BSE Sensex plunging 1,235.08 points (1.60%) to close at a seven-month low of 75,838.36, while the broader NSE Nifty fell 320.10 points (1.37%) to settle at 23,024.65. The selloff was triggered by global concerns after U.S. President Donald Trump announced new trade tariffs targeting neighboring countries during his inauguration.
Intraday, the Sensex dropped as much as 1,431.57 points to hit 75,641.87, while the Nifty briefly touched 22,976.85, reflecting heightened volatility. Major drags included ICICI Bank, Reliance Industries, and Adani Ports, with Zomato, NTPC, State Bank of India, and Mahindra & Mahindra also contributing to the losses. UltraTech Cement and HCL Technologies were the only stocks to end in the green.
"Domestic markets tumbled due to fears of a global trade war reignited by President Trump's tariff announcements. Weak corporate earnings and a depreciating rupee have added to the uncertainty, prompting significant Foreign Institutional Investor (FII) outflows," said Vinod Nair, Head of Research at Geojit Financial Services. FIIs sold equities worth ?4,336.54 crore on Monday, further pressuring the market.
Global markets offered a mixed picture. European markets traded higher on Tuesday, while in Asia, Tokyo and Hong Kong posted gains. Shanghai and Seoul were largely flat. U.S. markets remained closed on Monday in observance of Martin Luther King Jr. Day.
Meanwhile, Brent crude prices dipped 0.76% to $79.54 per barrel, reflecting subdued sentiment in energy markets.
The previous trading session on Monday had seen a brief recovery, with the Sensex gaining 454.11 points to close at 77,073.44 and the Nifty rising 141.55 points to settle at 23,344.75. However, Tuesday's broad-based selloff erased those gains and heightened concerns among investors.
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