Sensex and Nifty crash as investors react to US reciprocal tariff concerns
PTC Web Desk: Benchmark indices saw substantial losses as global market uncertainty weighed on sentiment. At 11:48 am, the S&P BSE Sensex slumped 1,268.32 points to 76,146.60, while the NSE Nifty50 dropped 328.55 points to 23,190.80. Broader market indices followed suit, mirroring the heightened volatility.
IT stocks were among the worst affected, with the Nifty IT index falling 2.3%. Shares of Infosys and Tata Consultancy Services (TCS) dropped over 2%, as concerns over tariff implications mounted.
The market downturn aligns with analysts' expectations amid ongoing uncertainty surrounding Donald Trump’s reciprocal tariff policy. The US is set to implement the new tariffs on Wednesday, raising concerns about potential disruptions to global trade and India's economy.
While India and the US are engaged in trade negotiations to mitigate the impact, a final agreement has yet to be announced. Reports indicate that discussions are progressing positively, with both sides nearing a favourable deal. However, the lack of official confirmation has left investors, particularly retail traders, anxious.
Experts say global markets are closely tracking the details of Trump’s reciprocal tariffs, set to be announced tomorrow. The market's reaction will hinge on the specific measures and their sectoral impact.
Despite the current volatility, analysts remain optimistic about the broader market outlook. India outperformed global markets in March, posting a 6.3% return, supported by renewed foreign institutional investor (FII) interest and short-covering rallies.
Experts suggest that while short-term volatility is likely, markets could stabilise once there is clarity on the tariff measures. A potential trade agreement between India and the US may also cushion the impact compared to economies like Canada, Mexico, and China, which are expected to face stronger headwinds. Market strategists advise investors to adopt a cautious approach and monitor developments closely. The uncertainty surrounding reciprocal tariffs warrants a "wait-and-watch" strategy before making significant portfolio adjustments.
- With inputs from agencies
