The Indian stock market opened sharply lower on Monday, following a steep sell-off across Asian markets after US President Donald Trump announced new trade tariffs. The tariffs, set to take effect from Tuesday, have added to concerns of escalating trade tensions and their potential economic impact.
At 9:33 AM, the benchmark Sensex was down more than 400 points at 77,103.22, while the Nifty dropped 154 points to 23,328.00. At the opening bell, the Sensex had lost 710 points, or 0.88%, slipping to 76,821.50. On the National Stock Exchange (NSE), all sectors witnessed declines, with Nifty Metal and Nifty Realty being the worst performers.
Asian markets were also hit hard by the news, with Hong Kong’s Hang Seng Index falling by 1.3%, Japan’s Nikkei 225 dropping 2.4%, South Korea’s KOSPI tumbling 3%, and Australia’s ASX 200 losing 1.8%.
Trump’s announcement on Saturday (US time) that he would impose tariffs of 25% on imports from Canada and Mexico, and 10% on goods from China starting Tuesday, sent shockwaves through global markets. He also indicated that new tariffs could be placed on imports from the European Union, further heightening market uncertainty.
US equity futures also saw a sharp sell-off in response to Trump’s tariff decision, and analysts are anticipating a volatile day for global markets.
According to Hardik Matalia, a Derivatives Analyst at Choice Broking, the Nifty could find support around 23,200, followed by 23,100 and 23,000. On the upside, immediate resistance is seen at 23,500, with further resistance at 23,600 and 23,700.
The Indian Rupee also weakened, opening 41 paise lower at 87.02 against the US Dollar, compared to the previous close of 86.61 on Friday.
Vikram Kasat, Head of Advisory at PL Capital-Prabhudas Lilladher, said that the markets were bracing for a volatile day after Trump’s decision. He mentioned, “It will be fascinating to see how investors react to something they have known was coming and which is almost universally seen as damaging for economic growth and financial assets. They won’t be surprised, but they will still be shocked.”
In terms of foreign investment, Foreign Institutional Investors (FIIs) remained net sellers on February 1, offloading equities worth Rs 1,327 crore, while domestic institutions bought equities worth Rs 824 crore on the same day.
The announcement also triggered high volatility in the precious metals markets, with both gold and silver slipping from their highs. The strength of the US Dollar index, along with the onset of the US trade tariff war, put pressure on these commodities. Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd, noted that gold and silver were holding key support levels of $2,722 and $30.20 per troy ounce, respectively, on a weekly closing basis in international markets.
As global markets grapple with the unfolding trade tensions, investors are closely monitoring how the situation will evolve, particularly in light of the ongoing uncertainty surrounding President Trump’s tariff policies.
-IANS
Wherever on the spot redressal of the grievances was not feasible, Director General directed the concerned authority to redress the grievances within one week’s time.