The Indian equity benchmark indices bled throughout the trading session on Tuesday. The BSE Sensex nosedived 1,235 points and closed trading at 75,838.36, breaching a seven-month low. Meanwhile, the NSE Nifty50 settled for the day at 23,024.65, tanking more than 300 points or 1.37 per cent.
During the session, the Sensex crashed more than 1,400 points or 1.85 per cent to reach an intraday low of 75,641.87, while the Nifty nosedived over 350 points or 1.57 per cent to breach the 23k mark.
Broader Markets
By the time the markets closed, UltraTech Cement and HCL Tech remained the only gainers on the 30-share Sensex platform. On the other hand, the major laggards for the day included Zomato, Adani Ports, NTPC, ICICI Bank, and State Bank of India.
Notably, Zomato shares crashed almost 11 per cent following a major slump in the net profit reported in the third quarter earnings for the company.
This bloodbath in the market was attributed to an across-the-board selloff triggered by worries of a global trade war after US President Donald Trump imposed tariffs on neighbouring nations on his inauguration day.
In the broader markets, the indices closed in a sea of red. The Nifty Midcap Select plunged 2.78 per cent, followed by the Nifty Next 50 index which declined 2.61 per cent.
Sectorally, the Realty and Consumer Durables indices dominated among the laggards and settled in red at 4.12 per cent and 4.06 per cent respectively.
Vinod Nair, Head of Research, Geojit Financial Services, explained, “Domestic markets experienced a significant decline today, with heightened volatility, followed by Trump’s announcement of trade tariffs on neighbouring countries on his inauguration day, adding uncertainty into global markets. The weak recovery in the ongoing Q3 earnings, coupled with a depreciating INR, are likely to prompt further outflows from FIIs.”
Macro Indicators
The European markets traded higher on Tuesday, while Tokyo and Hong Kong settled on a high in the Asian markets. Meanwhile, Shanghai and Seoul closed trading on Tuesday on a flat note. The global oil benchmark Brent crude fell 0.76 per cent to touch $79.54 per barrel. The foreign institutional investors (FIIs) dumped Indian equities worth Rs 4,336.54 crore on Monday, exchange data revealed.
The Indian rupee also closed for the day 14 paise lower at 86.59 (provisional) against the US dollar, weighed down by major sell-offs in the domestic markets and a recovery in the US dollar index.
