The Sensex closed at 80,080.57, down 705 points or 0.87 per cent, after opening weak at 80,754 against the previous close of 80,786.54.
Biz Desk
Indian equity markets ended Thursday’s session lower, dragged by selling across key sectors as investors digested the impact of the newly imposed 50 per cent U.S. tariffs on Indian exports.
The Sensex closed at 80,080.57, down 705 points or 0.87 per cent, after opening weak at 80,754 against the previous close of 80,786.54. It touched an intra-day low of 80,013.02 before partial recovery in late trade. The Nifty 50 settled at 24,500.90, down 211.15 points or 0.85 per cent.
Vinod Nair, Head of Research at Geojit Financial Services, said: “Domestic equities ended lower as pessimism took hold following the implementation of tariffs on Indian goods. A brief recovery came after the cotton import duty exemption, but overall sentiment stayed fragile. Large-caps corrected sharply while mid- and small-caps underperformed, reflecting risk-off mood.”
Sector-wise Performance
- IT & Technology: Nifty IT declined 1.59 per cent, with Infosys, TCS, and HCL Tech among the top losers as fears grew over reduced demand from U.S. clients.
- Financials & Banking: Nifty Fin Services fell 1.20 per cent, and Nifty Bank shed 1.16 per cent. HDFC Bank, ICICI Bank, and SBI all ended in the red on concerns over credit growth and rising global yields.
- FMCG: Nifty FMCG dipped 1.02 per cent, with Hindustan Unilever and ITC under pressure due to slowing consumption trends and tariff-linked inflation fears.
- Automobile: Nifty Auto slipped 0.54 per cent as Mahindra & Mahindra and Tata Motors corrected, although Maruti Suzuki bucked the trend, closing higher on festive season demand hopes.
- Metals: Metal counters extended losses, reflecting concerns over weaker global trade flows and higher U.S. levies on Indian steel products.
- Consumer Durables: The only bright spot, supported by GST rationalisation measures and expectations of robust festive demand, with Titan and L&T ending in the green.
Broader Market Weakness
The broader market reflected the sell-off, with Nifty Small Cap 100 and Nifty Midcap 100 both falling 1.45 per cent, while Nifty 100 dropped 0.93 per cent. Analysts highlighted persistent FII selling and weak liquidity in mid- and small-cap counters.
Currency and Outlook
The rupee weakened further, pressured by sustained foreign fund outflows, ending in the 87.25–87.40 per U.S. dollar range. Market experts expect the currency to remain volatile, with projections of it trading between 87.25–88.25 in the near term.
Jateen Trivedi, VP Research at LKP Securities, noted: “The imposition of 50 per cent U.S. tariffs has heightened uncertainty for exporters, particularly in textiles, pharma, and machinery. Unless clarity emerges from India-U.S. trade negotiations or alternative trade agreements, markets are likely to remain cautious.”
Overall, the tariff shock has not only rattled equities but also raised concerns about India’s growth trajectory, fiscal deficit, and external trade balance.