ET Market Watch: Sensex falls over 270 pts, Nifty below 25,000; FMCG stocks trade lower
Hello and welcome to a brand-new episode of ET MARKET WATCH - your daily podcast for daily market updates. I am Neha Vashishth Mahajan, let's hear the top highlights of the day.
Markets took a breather on Monday as benchmark indices ended in the red following Moody's downgrade of the U.S. government's credit rating — a move that triggered global caution.
The Sensex slipped 271 points to close at 82,059, while the Nifty lost 74 points, ending below the key 25,000 mark at 24,945.
The big drag? IT stocks, with heavyweights like Infosys, TCS, HCL Tech, and Tech Mahindra falling up to 3%. These companies earn a large chunk from the U.S., so any hit to U.S. creditworthiness spooks investors.
Defence stocks also saw profit booking after last week's sharp rally — HAL, Cochin Shipyard, and Mazagon Dock dropped up to 4%.
On the bright side, mid and small caps outperformed —
Nifty Smallcap 100 rose 0.5%,
Midcap 100 gained 0.1% — marking six straight sessions of gains.
Among individual movers:
Vodafone Idea plunged 8.7% after challenging the govt over $5 billion in dues.
Divi's Labs jumped 4.8% on better-than-expected Q4 profits.
Experts say this is a healthy pause, with banking likely to lead the next leg of the rally. Technicals suggest Nifty needs to hold above 25,000 to reclaim momentum.
Global cues stayed weak — Asian markets dipped, U.S. futures slipped, and Treasury yields rose.
Rupee closed at 85.40 vs the dollar,
Oil eased, and
Gold rebounded after last week's fall.
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Time of India
an hour ago
- Time of India
50% US tariff on Indian goods could shave 0.3% off GDP in FY26: Moody's
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US faces stagflation risk — what it might mean for stocks, bonds, and the dollar
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Australian dollar: With Australia's resource-rich economy and ties to Asian growth markets, Savouri sees the Aussie dollar as a safer bet amid dollar weakness. Big tech could shine while small caps face serious pressure Market reactions: Stocks edge higher, but gold rallies and dollar slips U.S. stock indices posted mild gains, driven mainly by tech stocks and defensive plays. posted mild gains, driven mainly by tech stocks and defensive plays. The U.S. dollar index slipped as investors rotated out of dollar-denominated assets. slipped as investors rotated out of dollar-denominated assets. Gold prices spiked, fueled by safe-haven demand and new tariffs that could drive up commodity costs. 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In a sharply worded warning, Savouri cautioned that the U.S. is on the cusp of a stagflationary era fueled by a weakening U.S. dollar, escalating tariffs, and labor shortages triggered by tighter immigration argues that the Federal Reserve may soon be forced into a difficult position: unable to aggressively cut interest rates due to persistent inflation, yet needing to respond to economic of the clearest signals of this looming stagflation, according to Savouri, is the decline of the U.S. dollar. As the U.S. imposes new tariffs and pulls back on global trade engagement, demand for the dollar as a global reserve currency could wane. This devaluation is already being felt in currency markets, where the dollar index has dipped recently, signaling reduced investor confidence.A weaker dollar typically drives up the price of imported goods, pushing inflation even higher—exactly the kind of cycle that defines also warned of a steepening U.S. Treasury yield curve, a classic signal of economic stress. This steepening reflects higher long-term interest rates compared to short-term ones, as investors demand greater returns to offset future inflation could signal that markets no longer believe the Federal Reserve can keep inflation under control, potentially destabilizing the traditionally 'safe' bond market. In turn, this shift could impact everything from mortgage rates to corporate borrowing inflation expected to stay high and the dollar under pressure, Savouri is advising investors to consider inflation-protected assets. His top recommendations:These hedges may become essential tools for both institutional investors and average savers looking to protect the real value of their won't hit all stocks equally. According to Savouri, large-cap technology companies like Apple, Microsoft, and Alphabet may weather the storm better than others due to their global revenue base and pricing power. Their ability to pass costs onto customers, invest in productivity-boosting AI, and maintain strong margins gives them a clear the other hand, small- and mid-cap companies, especially those that are U.S.-focused and labor-intensive, could struggle. With slower growth and tighter consumer spending, these companies might face a double blow of rising costs and weakening appear to be waking up to this stagflation threat. On the same day Savouri's warning gained traction:This market response reflects growing uncertainty about the Fed's ability to navigate these conflicting economic average Americans, the risk of stagflation means higher prices at the store, potential job insecurity, and lower real returns on traditional investments like bonds or savings accounts. For policymakers, it presents a double bind: interest rate cuts may spur growth but worsen inflation; hiking rates might curb inflation but kill message is clear: this is not a drill. The U.S. must confront serious structural challenges—including its trade posture, labor policies, and monetary strategy—if it hopes to avoid the prolonged pain of signs of stagflation in 2025 are becoming harder to ignore. With inflation staying stubborn, economic growth slowing, and markets beginning to react, investors and households alike should review their financial hard assets, and inflation-linked securities may be more important now than ever. And for those managing large portfolios or retirement savings, understanding the implications of stagflation will be critical in navigating what could become one of the most challenging macroeconomic periods in recent U.S. means high inflation and slow economic growth happening at the same time in the TIPS, and the Australian dollar are strong hedges during stagflation.
