Dear
Trader…
Benchmark indices ended lower on Monday, with the BSE Sensex
falling over 500 points and the Nifty fo slipping below 23,400, as investor
sentiment weakened after U.S. President Donald Trump threatened to impose new
tariffs on steel and aluminum imports, along with reciprocal tariffs on
multiple countries.
The BSE Sensex declined 548 points, or 0.70%, to 77,311,
while the NSE Nifty future lost 155 points, or 0.66%, to settle at 23,459.
The total market capitalisation of all BSE-listed companies
dropped by Rs 6.21 lakh crore to Rs 417.72 lakh crore.
All 13 major sectors logged losses on the day. The broader,
more domestically-focussed midcaps and smallcaps shed 2.1% each.
The two heaviest stocks in the benchmark indexes, HDFC Bank
and Reliance Industries lost 1% each.
Metal stocks fell 2.6% on the day. Tata Steel lost 3.1% to be
among the top Nifty 50 laggards.
State-run explorer Oil India fell 4.6% while Shipping
Corporation of India declined 6.1% after disappointing quarterly earnings.
Why the stock market fell today –
1) Trump’s tariff warning hits sentiment – Trump announced on Friday that he plans to introduce
reciprocal tariffs by Monday or Tuesday, escalating tensions in global trade.
His move aims to impose tariffs on imports equal to the rates trading partners
apply to U.S. exports, adding uncertainty to global markets.
2)
Rate cut hopes fade – The U.S. President also repeated
warnings of imminent tariffs, including on steel and aluminium imports, an
inflationary move that could limit the scope for rate cuts.
Higher rates in the U.S. make investments in emerging markets
such as India less attractive for foreign investors.
3)
Persistent FII selling – Foreign
portfolio investors have offloaded Indian shares worth about $9.9 billion on a
net basis in 2025 so far, according to the National Securities Depository
(NSDL).
4)
Rupee at record low – The Indian rupee hit an all-time
low of 87.95 against the U.S. dollar before closing at 87.4750, pressured by
Trump’s tariff announcement and ongoing portfolio outflows.
The rupee, which saw its worst weekly decline since December
2022, is expected to remain under pressure ahead of crucial U.S. inflation data
this week.
Nifty futures opened at 23589 points against the previous
close of 23614 and opened at a low 23388 points. Nifty Future closed with an
average movement of 235 points and Decline of around 155 points and closed 23459
points…!!
Meanwhile,
With the dollar index above 108 and the 10-year
US bond yield above 4.4%, FIIs will continue to sell the rally, restricting any
potential upside.
Technically,
the important key resistances are placed in Nifty future are at 23459 levels,
which could offer for the market on the higher side. stainability above this
zone would signal opens the door for a directional up move with immediate
resistances seen at 23505 – 23606 levels. Immediate support is placed at 23272 –
23202 levels.
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securities quoted are for illustration only and are not recommendatory.
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