Sensex falls 849 points, Nifty down 256; Rupee weakens further
BIZ DESK
Indian equity markets ended sharply lower on Tuesday as investor sentiment weakened ahead of the US move to impose 50 per cent tariffs on select Indian goods, effective Wednesday. The broader sell-off weighed across indices, with only FMCG stocks managing to buck the trend.
The Sensex closed at 80,786.54, down 849.37 points or 1.04%, after touching an intraday low of 80,685.98. The Nifty ended at 24,712.05, shedding 255.70 points or 1.02%.
“Domestic sentiment turned cautious as the US tariff deadline nears. Persistent rupee depreciation is another factor pressuring foreign inflows. Investors are also watching government initiatives on GST rationalisation and industry-specific relief,” said Vinod Nair, Head of Research, Geojit Financial Services.
Sector-wise Performance
- Banking & Financials
- Nifty Bank dropped 688.85 points or 1.25%, reflecting pressure on large lenders like SBI, ICICI Bank, Axis Bank, and HDFC Bank.
- Nifty Financial Services also slipped 354.30 points or 1.35%, with Bajaj Finance and Bajaj FinServ among the biggest losers.
- Automobile
- Nifty Auto fell 103.10 points or 0.41% as Maruti Suzuki bucked the trend to end higher, while M&M and Tata Motors witnessed declines.
- Information Technology (IT)
- Nifty IT ended 216.85 points lower or 0.60% as weak global sentiment and fears of slower outsourcing weighed on Tech Mahindra, HCL Tech, and Infosys.
- FMCG – The Lone Bright Spot
- Nifty FMCG surged 505.35 points or 0.91% amid expectations of higher consumption. ITC, Hindustan Unilever, and Maruti Suzuki emerged as top gainers in the pack.
- Energy & Infra
- L&T, NTPC, and BEL closed in the red as selling extended to capital goods and power stocks.
Broader Market Under Pressure
- Nifty Small Cap 100 fell 2.03%.
- Nifty Midcap 100 slipped 1.62%.
- Nifty Next 50 lost 1.35%, reflecting widespread weakness across broader indices.
Currency and Global Cues
The rupee weakened further by 0.18, trading near 87.75, with a downside bias. According to Jateen Trivedi of LKP Securities, “The US tariffs will weigh on India’s export outlook, limiting any recovery in the currency. Despite softer crude prices, tariff concerns overshadowed gains.”
FII outflows and rising dollar demand capped any upside for the currency, with trading expected in the 87.25–88.25 range.
Key Takeaways
- US tariffs deadline sparks broad sell-off in Indian equities.
- Sensex and Nifty fall over 1% each.
- FMCG stocks rally, while banking, IT, and auto drag indices down.
- Rupee extends losses, hovers near record lows.
- Broader markets and mid-small caps face heavier selling pressure.