Sensex Plunges Over 1,100 Points Amid US Reciprocal Tariff Concerns
Indian frontline indices saw a sharp decline on Tuesday, with both the Sensex and Nifty facing substantial losses. The downturn was driven primarily by concerns surrounding the US’s upcoming reciprocal tariffs, set to come into effect on April 2. These fears weighed heavily on market sentiment, particularly in the IT and financial service sectors.
As of 11:05 am, the Sensex had dropped by 1,136.25 points, or 1.47 percent, standing at 76,260.90, while the Nifty was down by 283.70 points, or 1.21 percent, at 23,231.20. The decline was broad-based, affecting not only large-cap stocks but also midcap and small-cap stocks. The Nifty Midcap 100 index was down 359.10 points, or 0.69 percent, at 51,313.35, and the Nifty Smallcap 100 index fell by 99.35 points, or 0.61 percent, to 15,997.15.
Among the sectors, the Nifty IT index saw the most significant drop, falling by over 2 percent. Financial services, pharma, metal, realty, and auto sectors also registered notable losses, reflecting the overall market sentiment.
In the Sensex pack, stocks such as IndusInd Bank, Zomato, Nestle, ITC, and Bharti Airtel were among the few gainers. However, the majority of the stocks in the index were in the red, with Bajaj Finserv, Infosys, HDFC Bank, Axis Bank, Bajaj Finance, HCL Tech, TCS, and Sun Pharma leading the losses.
According to Krishna Appala of Capitalmind Research, caution remains high due to global economic concerns. “The potential tariff announcements and their economic fallout continue to be key issues that are influencing market sentiment,” Appala stated.
Experts predict near-term volatility due to global uncertainties, but they maintain a positive long-term outlook for the Indian market, supported by strong domestic fundamentals. In this context, assets like gold may serve as a stabilizer within investment portfolios, complementing broader strategies rather than acting as a tactical move.
On the global front, Asian markets were largely in the green zone, with major markets such as Shanghai, Tokyo, Seoul, Bangkok, and Hong Kong trading higher. Meanwhile, the US markets rebounded from a seven-month low on Monday, closing with a 1 percent gain.
Foreign Institutional Investors (FIIs), who had been on a buying spree for the past six sessions, turned net sellers on March 28, offloading equities worth Rs 4,352 crore. However, Domestic Institutional Investors (DIIs) continued their buying activity, purchasing equities worth Rs 7,646 crore on the same day, providing some support to the market.
As market participants brace for the economic impact of the US reciprocal tariffs, the next few days could bring further fluctuations in market performance.
