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Benchmark equity indices, BSE Sensex and Nifty50, were trading sharply lower on Wednesday, reflecting mixed global cues
Stock Market Today
Sensex Today: Benchmark equity indices, BSE Sensex and Nifty50, recovered most of their losses from the day’s lows and were trading with smaller declines on Wednesday, amid mixed global cues.
By 12 PM, the BSE Sensex stood at 76,203.50, down by 90.11 points, or 0.12%, while the Nifty50 was at 23,053.65, lower by 18.15 points, or 0.08%.
Shares of Reliance Industries, Asian Paints, Power Grid Corporation, and Tata Motors from the BSE Sensex hit their 52-week lows during Wednesday’s intra-day trading, following a sharp sell-off in the market.
In the BSE 100 index, stocks such as Coal India, Canara Bank, DLF, GAIL (India), Hero MotoCorp, Indian Oil Corporation, Jio Financial Services, REC, and Tube Investments of India also reached their 52-week lows during intra-day trading, with some of them falling by up to 5%.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “Trump’s tariff actions have been affecting markets for several days. His shift from targeting specific countries like Mexico, Canada, and China to imposing blanket tariffs on steel and aluminum imports has heightened concerns. The European Union’s response, threatening counter tariffs, increases the likelihood of a full-scale trade war, though its outcome remains uncertain.
It’s crucial to recognize that despite his power, President Trump cannot alter economic laws. Should higher tariffs lead to inflation in the U.S. and the Fed adopts a hawkish stance, the U.S. stock market could suffer, which would ultimately rein in Trump. However, this process will take time. Meanwhile, market volatility is expected to persist.
Investors should take advantage of the current market weakness to shift from mid- and small-cap stocks, which remain overvalued, to large-cap stocks that are fairly valued. While the market is in oversold territory and a rebound seems probable, foreign institutional investors (FIIs) are likely to sell into any rally, capping the potential upside.”
Global Cues
Asia-Pacific markets opened mixed on Wednesday after Federal Reserve Chair Jerome Powell indicated there was no immediate need to cut interest rates.
On Wall Street, the major indexes closed in opposite directions on Tuesday. While gains in Coca-Cola and Apple helped offset losses in Tesla, investors digested Powell’s latest remarks. The S&P 500 gained 0.03%, ending the session at 6,068.50 points. The Nasdaq fell 0.36% to 19,643.86 points, while the Dow Jones Industrial Average rose 0.28% to 44,593.65 points.
Oil prices dropped on Wednesday, as an industry report revealed an increase in U.S. crude stockpiles. Tariff concerns also weighed on market sentiment, erasing gains made over the past three days due to rising tensions in the Middle East and intensifying sanctions.
