Renewed global trade concerns drag benchmark indices lower
Mumbai: Benchmark equity indices Sensex and Nifty on Monday ended marginally lower, following sluggish trends in global markets amid renewed global trade concerns. Besides, the Russian-Ukraine conflict, sharp jump in Brent crude oil prices and foreign fund outflows dented investors' sentiment, experts noted.
After tumbling 796.75 points or 0.97 per cent to 80,654.26 in intra-day trade, the 30-share BSE Sensex witnessed volatile trends and later ended 77.26 points or 0.09 per cent lower at 81,373.75. The NSE Nifty dipped 34.10 points or 0.14 per cent to settle at 24,716.60. During the day, it dropped 224.55 points or 0.90 per cent to 24,526.15.
'Benchmark indices closed lower with marginal losses in a volatile start to June. Markets started the week on a cautious, range-bound note, with Nifty-50 sharply lower at open on fresh trade tensions after the US announced the doubling of steel and aluminium tariffs to 50 per cent. Despite positive domestic cues after surprisingly strong GDP growth in the January-March 2025 quarter, markets were dragged lower in the morning on worsening global headlines ranging from trade to war.
'US and China traded barbs with each other over the weekend while Russia Ukraine conflict worsened after drone attacks. Markets soon staged a strong recovery erasing the sharp morning losses, as investors look forward to RBI meet and widely expected rate cut,' Satish Chandra Aluri, Analyst, Lemonn Markets Desk, said.
From the Sensex firms, Tech Mahindra, Tata Steel, Tata Motors, Titan, HDFC Bank, IndusInd Bank, Infosys and Kotak Mahindra Bank were among the biggest laggards. On the other hand, Adani Ports, Mahindra & Mahindra, Power Grid, Eternal and Hindustan Unilever were among the gainers. The BSE midcap gauge jumped 0.58 per cent and smallcap index went up by 0.36 per cent. Among sectoral indices, BSE Focused IT dropped 0.70 per cent, metal (0.58 per cent), teck (0.45 per cent), consumer durables (0.40 per cent), commodities (0.18 per cent) and oil & gas (0.13 per cent). Realty surged 2.38 per cent, services (1.20 per cent), FMCG (0.65 per cent), utilities (0.57 per cent) and power (0.35 per cent).
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,449.74 crore on Friday, according to exchange data. US President Donald Trump on Friday said he would double tariffs on steel and aluminium to 50 per cent.
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