Why Is Market Down Today? Sensex Declines Below 75,000, Nifty Below 22,600 In Opening Trade
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Out of the 30 Sensex shares, 28 were in red with Zomato, HCL Tech, PowerGrid, HDFC Bank, and IndusInd Bank being the biggest losers falling up to 2 per cent.
Stock Market Today.
The BSE Sensex on Monday opened lower by 535.04 points at 74,788.32, while the NSE Nifty was down by 160 points at 22,635.9, amid relentless FII selling and global uncertainties related to Trump tariffs. As of 9:55 am, the market declined further with the Nifty falling below 22,600 at 22,591, while the Sensex extending loses to trade over 703 points lower at 74,620.30.
Out of the 30 Sensex shares, 23 were in red. Among the top losers were HCL Tech, Infosys, Tech Mahindra, TCS and ICICI Bank falling up to 3.14 per cent. However, only seven shares were in green — Mahindra & Mahindra, Maruti, Sun Pharma, Larsen & Toubro, Nestle India, Tata Motors, and ITC — rising up to 0.82 per cent
On the Nifty, all 11 other sectoral indices were in the red, except Nifty Pharma and Nifty Healthcare. The Nifty IT was the worst hit, sliding over 2 per cent, weighed down by heavyweights Infosys and TCS.
In February so far, foreign portfolio investors (FPIs) have sold a net of Rs 36,977 crore in Indian equities, while domestic institutional investors (DIIs) net bought shares worth Rs 42,601 crore.
Why Is Market Down Today?
The domestic equities markets are down taking a cue from the US market which slumped in the previous trade amid concerns over softening consumer demand as well as tariff threats.
The consumer sentiment in the US hit a 15-month low as inflation in America is expected to rise due to additional tariff measures.
Stagflation, which is a situation in which the economy faces slowing growth and rising prices, in the world’s largest economy US is a troubling sign for India’s export-driven sectors, particularly IT.
V K Vijayakumar, chief investment strategist, Geojit Financial Services, said, “The market is facing headwinds from relentless FII selling and global uncertainties relating to Trump tariffs. The sharp surge in Chinese stocks is another near-term headwind. The ‘Sell India, Buy China’ trade may continue for some time since Chinese stocks continue to be attractive. The sharp spike in CBOE VIX indicates that volatility will continue for some time. In the US, long-term inflation expectations are rising and, therefore, the expected rate cut by the US Fed is unlikely to materialise.”
The Fed might even turn hawkish, impacting US stock markets. If this happens and the US bond yields start declining, FIIs may cease to be sellers in India and may even resume buying. The near-term scenario is highly uncertain, he added.
“The positive factor in our market is that the valuations of largecaps have turned fair and in certain segments like financials attractive, giving opportunities for long-term investors to buy. Even though the broader market valuations continue to be high, there are opportunities in select stocks in this segment,” Vijayakumar said.
Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, said, “As we advance, continued foreign fund outflows and concerns over US President Donald Trump’s tariff stance in his second term in office may keep investors on edge in a holiday-shortened week.”
In Asian markets, Seoul, Shanghai and Hong Kong were trading lower.
US markets had ended significantly lower on Friday.
Global oil benchmark Brent crude dropped 2.13 per cent to USD 74.43 a barrel.
