Sensex falls over 300 pts, Nifty below 24,550 as Trump tariffs fog street sentiments; IT stocks fall
ADVERTISEMENT The BSE Sensex fell 320 points, or 0.39%, to open at 80,305, while the NSE Nifty shed 85 points, or 0.35%, to open at 24,509.
Within the 30-share Sensex, Bharti Airtel, Infosys, Bharat Electronics (BEL), Eternal, Axis Bank and HDFC Bank were among the top losers, shedding between 0.5% and 2.8%.
Sectorally, IT and financial stocks bore the brunt of the selling, with the Nifty IT index down 0.6% and Nifty Financial Services slipping 0.2%.The Nifty and Sensex fell nearly 1% each on Thursday after U.S. President Donald Trump announced an additional 25% tariff on Indian exports, doubling existing levies to 50%. The White House cited New Delhi's continued oil trade with Moscow as the trigger for the move.Trump has also threatened fresh sanctions on Russia and its trading partners starting Friday, unless President Vladimir Putin agrees to end the three-and-a-half-year war in Ukraine.
ADVERTISEMENT Bucking the trend, oil and gas stocks edged higher, with the sector trading up 0.7% as shares of Indian Oil Corporation and BPCL rose as much as 2%.Meanwhile, the broader market remained subdued, with small-cap and mid-cap stocks largely flat in early trade.
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The market continues to be technically and fundamentally weak and continuous lower lows on the Nifty is technically a weak sign, said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments, adding that from the fundamental perspective, there are no indications yet of a sharp uptick in earnings for FY26. "These weak indicators, along with the relatively high valuations in India, are triggering sustained selling by the FIIs. FIIs have sold on all trading days of August, so far, taking their total cash market selling in August, till now, to Rs 15950 crore," said Vijayakumar.
ADVERTISEMENT In the present context of negative sentiments in the market caused by the tariff skirmishes between India and the U.S., FIIs are likely to continue selling in the cash market, said Vijayakumar, adding that "the only saving grace is the sustained DII buying which remains strong. The strong DII buying assisted by sustained flows into mutual funds can prevent a crash in the market. Investors may wait and watch for the developments on the tariff front to unfold."
With 88% of Nifty 500 stocks bouncing at least 1% off the day's lows, a broad based recovery is in sight, said Anand James, Chief Market Strategist, Geojit Investments, adding that the Nifty paused not far from the key pivot of 24,590 is a sign of a measured upside move, which has the potential to evolve into a stronger push.
ADVERTISEMENT "But, we will begin with a limited upside view of 24670-717, with an intention to play larger upside aiming 24850-25000. Downside marker may be placed near 24548," said James.
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