Domestic benchmark indices, Nifty 50 and Sensex, pared morning losses on the first trading day of FY26, a day before the implementation of reciprocal tariffs by U.S. President Donald Trump. At 10:10 am on Tuesday, the Sensex was down 138.68 points (0.18 per cent) at 77,276.24, while the Nifty fell 13.20 points (0.06 per cent) to 23,506.15. Market breadth was positive with 2,435 shares advancing, 726 declining, and 129 remaining unchanged.
Broader Market Update
The broader markets gained traction, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising by approximately 0.3 per cent each.
Sectorial Update
Sector-wise, the Nifty IT index slipped 1.5 per cent, and the realty index declined 1 per cent following the Maharashtra government's hike in Ready Reckoner Rates, making properties costlier. Conversely, the Nifty Auto and Nifty Media indices surged 1 per cent each.
Indian equity markets have experienced heightened volatility in recent sessions, driven by cautious investor sentiment ahead of the reciprocal tariffs. IT, auto, and pharmaceutical stocks faced significant selling pressure.
Expert Comments
VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said, "Globally markets are focused on the details of Trump’s reciprocal tariffs to be announced tomorrow. The market trends after the announcements will depend on the details of the tariffs and how they will impact different countries and sectors."
"India outperformed most markets in March with 6.3 per cent return. FIIs turning buyers and the consequent short covering contributed to the rally. Can the rally continue or will there be another downturn? This will depend mainly on what Trump announces in tariffs. If the tariffs are lower-than-feared there can be a rally in the market which will be led by externally linked sectors like pharmaceuticals and IT. On the other hand if the tariffs are severe there can be another round of downturn in the market. Investors can wait and watch and respond after the details are known," he added.