Stock markets lose turf amid tariff tension; Sensex sinks 706 points

Tariff Troubles Trigger Stock Market Tumble

India's stock markets experienced a significant downturn on Thursday, with the Sensex plummeting 706 points – a fall attributed to newly implemented US tariffs and persistent foreign fund outflows.

The Impact: The additional 25% US tariff on Indian purchases of Russian oil, bringing the total levy to a hefty 50%, sent shockwaves through the market. This, coupled with continued foreign investment withdrawals, created a perfect storm for investors.

Key Figures:

• Sensex: Down 705.97 points (0.87%), closing at 80,080.57.
• Nifty: Down 211.15 points (0.85%), closing at 24,500.90.

Winners and Losers: While some stocks, such as Titan, Larsen & Toubro, Maruti, and Axis Bank, bucked the trend, many others suffered significant losses. HCL Tech, Infosys, Power Grid, Tata Consultancy Services, HDFC Bank, Hindustan Unilever, Bharti Airtel, and ICICI Bank were among the major laggards.

Expert Analysis:

• Vinod Nair (Geojit Investments Limited): "Pessimism took hold following the tariff implementation, dampening investor sentiment. While a brief cotton import duty exemption offered a temporary reprieve, the overall mood remained fragile."
• Gaurav Garg (Lemonn Markets Desk): "The sell-off reflects ongoing concerns over US tariffs and sustained foreign fund outflows, keeping investor sentiment fragile."

Broader Market Trends:

• Midcap index: Down 1.09%
• Smallcap index: Down 0.96%
• Services sector: Down 2.27%
• Only Gainer: Consumer Durables

Global Context: While some Asian markets (South Korea, Japan, Shanghai) saw positive results, Hong Kong's Hang Seng fell. European markets traded mixed, and US markets closed positively on Wednesday. Brent crude oil prices also dipped.

Foreign Investment: Foreign Institutional Investors (FIIs) sold equities worth Rs 6,516.49 crore on Tuesday, offset somewhat by Domestic Institutional Investors (DIIs) purchasing stocks worth Rs 7,060.37 crore.

Note: The domestic equity markets were closed on Wednesday for Ganesh Chaturthi.