Sensex & Nifty 50 Decline Up to 0.52 Per Cent Amid Trade Tensions, Smallcap Index Down by 1.74 Per Cent

The Sensex slipped 0.41 per cent to 77,186.74, while the Nifty 50 fell 0.52 per cent to 23,361.05.

Market Update at 3:30 PM: Indian equity markets closed lower, as global trade concerns weighed on investor sentiment. US President Donald Trump has imposed tariffs on imports from Mexico, Canada, and China. The tariffs, which include 25 per cent duties on Canada and Mexico and 10 per cent on China, have fueled worries about slower global economic growth and increased consumer costs.

Domestically, weak cues dragged the benchmark indices into negative territory. The Sensex slipped 0.41 per cent to 77,186.74, while the Nifty 50 fell 0.52 per cent to 23,361.05.

The broader market also faced selling pressure, with the Nifty Midcap 150 declining 0.98 per cent to 19,579.20, while the Nifty Smallcap 250 tumbled 1.74 per cent to 15,677.65. Market volatility remained elevated, with India VIX rising 1.82 per cent to 14.35, reflecting heightened uncertainty.

Among sectoral indices, Nifty IT (up 0.68 per cent), Nifty Consumer Durables (up 0.55 per cent), and Nifty Healthcare (up 0.19 per cent) were the top gainers. Conversely, Nifty Oil & Gas plunged 2.22 per cent, followed by Nifty Metal (-1.73 per cent) and Nifty PSU Bank (-1.60 per cent), which contributed to the broader market decline.

Within the Nifty 50, Bajaj Finance surged 5.12 per cent, followed by Shriram Finance (up 3.06 per cent) and M&M (up 3.00 per cent), leading the pack of gainers. On the flip side, Larsen & Toubro (down 4.69 per cent), Tata Consumer Products (-3.07 per cent), and Hero MotoCorp (-2.98 per cent) emerged as the biggest losers in the session.

The overall market breadth remained weak, with only 787 stocks advancing, while a significant 2,063 stocks declined, indicating widespread selling pressure across the board.

Market Update at 9:45 AM: Indian equity markets opened in the red, weighed down by global trade concerns after U.S. President Donald Trump imposed heavy tariffs on imports from Mexico, Canada, and China. While Trump acknowledged potential short-term pain for Americans, the move, which includes 25 per cent tariffs on Canada and Mexico and 10 per cent on China, has raised fears of slowed global economic growth and increased consumer costs.

Domestically, weak investor sentiment saw the Sensex decline by 0.92 per cent to 76,817.75, while the Nifty 50 slipped 0.98 per cent to 23,252.70.

Broader markets also exhibited weakness. The Nifty Midcap 150 declined 1.15 per cent to 19,545.70, whereas the Nifty Smallcap 250 tumbled 1.69 per cent to 15,685.70. Volatility spiked, with the India VIX surging 5.03 per cent to 14.81, reflecting heightened uncertainty.

Among sectoral indices, Nifty Healthcare (0.35 per cent), Nifty Consumer Durables (0.47 per cent) and Nifty Pharma (0.02 per cent) were the top performers. On the flip side, Nifty Metal plunged 3.64 per cent, followed by Nifty Oil & Gas (-2.61 per cent) and Nifty PSU Bank (-1.85 per cent), which dragged down the broader markets.

Within the Nifty 50, Indian Hotels (up 2.31 per cent), Titan (up 1.63 per cent), and Maruti Suzuki (up 1.51 per cent) emerged as the Top Gainers. Meanwhile, Bharat Electronics (-6.03 per cent), BPCL (-4.81 per cent), and ONGC (-4.39 per cent) were the biggest laggards.

Market breadth remained weak, with only 572 stocks advancing, while a significant 1,859 stocks declined, signaling broad-based selling pressure.

Market Update 8:15 AM: On Friday, U.S. equities declined after the White House announced that President Donald Trump would implement tariffs of 25 per cent on Canadian and Mexican imports and 10 per cent on Chinese goods starting Saturday. The Dow Jones Industrial Average decreased by 337.47 points, or 0.75 per cent, closing at 44,544.66. The S&P 500 fell by 30.64 points, or 0.50 per cent, ending at 6,040.53, while the Nasdaq Composite dropped 54.31 points, or 0.28 per cent, to settle at 19,627.44.

Asian markets opened lower on Monday following the U.S. administration's decision to impose tariffs on Canada, Mexico, and China over the weekend.

The GIFT Nifty is signaling a subdued opening for the Indian market. At approximately 7:00 AM IST, Nifty futures were trading at 23,382, indicating a negative start.

On February 1, during a volatile Budget Day session, Indian equity indices closed flat despite significant announcements by Finance Minister Nirmala Sitharaman, including an income tax relief package. The Sensex edged up by 5.39 points, or 0.01 per cent, to close at 77,505.96, while the Nifty declined by 26.25 points, or 0.11 per cent, finishing at 23,482.15.

U.S. Treasury yields experienced an uptick, with the 2-year yield rising nearly 1 per cent in response to the new tariffs. The 2-year Treasury yield stood at 4.23 per cent, while the 10-year yield was at 4.51 per cent.

The U.S. dollar strengthened, with the dollar index climbing to 109.7 following the tariff announcements against Canada, Mexico, and China.

WTI crude oil futures increased to around Rs 73.7 per barrel on Monday amid concerns over potential supply disruptions due to the newly imposed U.S. tariffs. The U.S. has announced tariffs of 25 per cent on goods from Canada and Mexico, and 10 per cent on those from China, effective Tuesday.

Foreign Institutional Investors (FIIs) continued their selling trend on February 1, offloading equities worth Rs 1,327 crore. In contrast, Domestic Institutional Investors (DIIs) were net buyers, purchasing equities worth Rs 824 crore on the same day.

No stocks are currently under the F&O ban for today.

Disclaimer: The article is for informational purposes only and not investment advice.