Stock Market Today: Sensex Plummet 247 Points, Nifty 22,400 Below

US equities dropped sharply on Monday, driven by concerns over tariff disputes and the potential for a government shutdown, raising fears of a recession in the US economy

The broader market, represented by the mid and small-cap indices, continued their poor performance

Source : ABPLIVE AI

Stock Market Today: The BSE Sensex and Nifty50, India’s key equity benchmarks, opened in the red on Tuesday. The BSE Sensex dropped over 400 points, while Nifty50 fell below 22,350. At 10 am, the Sensex fell by 247.18 points, or 0.33 per cent, to reach 73,867.99, while the Nifty dropped by 60.70 points, or 0.27 per cent, to reach 22,399.60. Out of the total shares, 929 advanced, 2,244 declined, and 111 remained unchanged.

Indian benchmark indices closed lower on Monday than in the previous trading session, with losses driven by the banking, automobile, and FMCG sectors.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “President Trump’s flip-flop tariff policy and the high uncertainty that it has triggered has started impacting US stock markets: S&P 500 & Nasdaq declining by 2.6 per cent and 4 per cent respectively yesterday is the market’s response to Trump’s tariffs and the possibility of US recession by the year end. We will have to wait and watch how the situation develops.”

“A significant consequence of the ongoing market correction is that India is now outperforming the US. During the last one month, while S&P 500 is down 7.5 per cent Nifty is down only 2.7 per cent. More importantly, the dollar index is down from 109.3 when Trump assumed presidency to 103.71 now. If this trend continues it will be good for emerging markets like India. Capital outflows from India will decline. The ideal investment strategy now is not to panic in the market correction and continue with the policy of slow accumulation of high quality stocks mainly in large caps and very selectively in beaten down mid and smallcaps,” he added.

Broader Market

The broader market, represented by the mid and small-cap indices, continued their poor performance, with the midcap 100 and smallcap 100 indices dropping by 0.5 per cent and 2 per cent, respectively. Both are now down more than 24 per cent and 27 per cent from their peak levels, though analysts remain cautious about valuations, suggesting that further downside could be on the horizon.

All 13 sectoral indices closed lower, with Nifty IT, Energy, and PSU Bank each falling by 1 per cent. Nifty Auto, Bank, FMCG, Infra, Metal, and Pharma also recorded losses of nearly 1 per cent. The Realty index declined for the fourth consecutive session, dropping almost 1 per cent.

Global Market

US equities dropped sharply on Monday, driven by concerns over tariff disputes and the potential for a government shutdown, raising fears of a recession in the US economy.

Asian equities fell for the third consecutive session on Tuesday, following the weakness in US markets, where the Nasdaq 100 posted its worst performance since 2022. Fears over tariffs and changes in government personnel weighed on the largest global economy.

Gold prices remained steady on Tuesday as traders awaited key inflation data to assess the Federal Reserve's interest rate decisions, while also keeping an eye on trade tensions and concerns about economic growth following US presidential tariffs.

The Japanese yen strengthened to near five-month highs on Tuesday, emerging as the favoured safe-haven currency amid concerns about a slowdown in US growth, which impacted both US equities and the dollar.

FIIs were net sellers, with an outflow of Rs 2,035.10 crore on Monday, while DIIs were net buyers, registering an inflow of Rs 2,320.36 crore.