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Benchmark equity indices, BSE Sensex and Nifty50, opened lower on Monday, tracking weak global cues and declines in Asian markets.
Sensex, Nifty Today
Equity indices BSE Sensex and Nifty50 were trading lower on Monday, weighed down by subdued global cues and declines in Asian markets.
By 1 PM, the BSE Sensex had dropped 516.12 points, or 0.67%, to 76,989.84, while the Nifty50 was at 23,279.85, down 202.30 points, or 0.86%.
In the afternoon session, all sectors, except IT (up 0.39%) and Consumer Durables (up 0.33%), were in the red. The Metal and Oil & Gas indices saw the steepest declines, falling 3% and 2.80%, respectively, followed by FMCG (down 2.14%), PSU Bank (down 2.02%), and Realty (down 1.20%).
The Nifty Bank (down 0.61%) and Financial Services (down 0.38%) indices also faced pressure, along with Healthcare and Pharma sectors.
In the broader markets, the BSE SmallCap index fell 1.85%, and the BSE MidCap index dropped 1.29%. Meanwhile, India’s risk gauge, the India VIX, rose 2.30% to 14.42.
The measures announced in Budget 2025 by Finance Minister Nirmala Sitharaman on Saturday, February 1, are expected to bolster a sluggish economy and move India closer to the government’s goal of achieving ‘Viksit Bharat’ by 2027. However, in the short term, investors are likely to adopt a cautious stance.
Other factors, such as a potential trade war in the US, the upcoming policy rate decision by the Indian central bank later this week, and ongoing selling by foreign institutional investors, are likely to influence market momentum.
Additionally, third-quarter results from companies like Power Grid Corp and Divi’s Laboratories, along with the final January Manufacturing PMI data from India, China, the US, and the UK, will be closely watched by investors.
In a separate statement, FM Nirmala Sitharaman highlighted that the FY26 Budget had reinforced the key foundations to guide the country’s progress towards a Viksit Bharat, outlining clear targets in several areas.
View by: Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
Despite an excellent Budget, the market is likely to face pressure from the Trump tariffs and the increased global uncertainty triggered by these ‘initial round of tariffs.’ It is crucial to understand that the 25% tariffs imposed on Mexico and Canada are aimed at punishing them for issues such as immigration and illicit fentanyl trade. Trump may also use tariffs against other countries over non-trade issues.
China’s response to the 10% tariffs has been more measured compared to Mexico and Canada. Rather than imposing retaliatory tariffs on US imports, China has chosen to challenge the US action at the WTO.
At this point, the situation remains uncertain. However, for now, India remains unaffected. As a result, the immediate impact on the Indian market is expected to be limited. That said, the rise in the dollar index to above 109.6 may lead to more selling by Foreign Institutional Investors (FIIs), which could put further pressure on the market.
Global Cues
Markets across the Asia-Pacific region were in the red on Monday after US President Donald Trump imposed tariffs on Canada, Mexico, and China over the weekend.
Australia’s S&P/ASX 200 dropped 1.7%, while Japan’s Nikkei 225 fell 1.99% and the Topix lost 1.85%. South Korea’s Kospi declined 2.43%, with the small-cap Kosdaq down 2.64%. Hong Kong’s Hang Seng Index was 0.52% lower.
Meanwhile, US stock futures tumbled on Sunday night as markets reacted to the newly imposed tariffs. Futures tied to the Dow Jones Industrial Average dropped by 463 points, or 1%, while S&P 500 futures fell 1.6% and Nasdaq-100 futures lost 2.1%.
