Share Market Closes In Red On Trump's Tariff Threats, Sensex Settles Nearly 550 Points Down

The slump in the indices could be attributed to the weak sentiment prevalent among the investors after US President Donald Trump threatened that more tariffs are expected.

Sensex settled the day at 77,311.80, while the Nifty50 closed the session at 23,381.60.

Source : Wikipedia

The Indian benchmark indices ended the trading session on Monday in the negative territory. The BSE Sensex plunged close to 550 points and settled the day at 77,311.80, while the NSE Nifty50 tanked almost 200 points to close the session at 23,381.60. 

The slump in the indices could be attributed to the weak sentiment prevalent among the investors after US President Donald Trump threatened that more tariffs are expected, and 25 per cent duties will be imposed on all steel and aluminium imports. While there was no clarity as to when these tariffs would come into effect, investors remained wary about the escalation of trade tensions and more retaliatory tariffs from the American government ahead.

On the 30-share Sensex platform, Kotak Mahindra Bank, Bharti Airtel, ICICI Bank, Tech M, and HCL Technologies closed the session among the gainers. On the other hand, the laggards included PowerGrid, Tata Steel, Zomato, Titan, and Bajaj Finance, among others.

In the broader markets, the Nifty Microcap 250 index plunged 2.47 per cent, followed by the Nifty Smallcap 50 index which closed 2.28 per cent lower. Sectorally, the Realty and Midsmall Healthcare indices dominated in red and settled 2.99 per cent and 2.98 per cent lower.

Vinod Nair, Head of Research, Geojit Financial Services, noted, “The US tariff threats continued to impact the market sentiment. Domestic yield is inching higher as investors stay cautious on riskier assets and navigate their investments to safe haven assets like gold.”

Ameya Ranadive Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, explained that the domestic indices tanked after the American president announced plans to put in place more fresh tariffs on the metal imports into the US.

Foreign Institutional Investors (FIIs) continued to dump Indian equities worth Rs 470.39 crore on Friday, according to exchange data. The global oil benchmark Brent crude climbed 1.04 per cent to touch $75.44 a barrel. The Indian rupee closed 1 paisa higher to settle at 87.49 (provisional) against the US dollar on Monday.