Indian Stock Markets Reel Under Looming US Tariff Threat

Indian stock markets closed lower for the second day due to US tariff concerns. The BSE Sensex fell by 1,390.41 points, while the Nifty 50 declined by 353.65 points. Experts cite the impending US tariff announcement as a major factor unsettling investor sentiment, causing significant market volatility.

The Indian stock markets suffered a substantial decline on Tuesday, marking two consecutive sessions of losses amid mounting fears over impending US tariffs. By the close of trading, the BSE Sensex plummeted 1,390.41 points, or 1.80%, while the Nifty 50 at the National Stock Exchange fell by 353.65 points, or 1.50%, to 23,165.70.

Volatility was the order of the day as both major indices tumbled over 1.50%, closing deep in the red. Market analysts attribute the downturn to US tariff announcements scheduled for April 2, which are heightening investor anxiety.

Ajay Bagga, an expert in market and banking sectors, commented, "The looming US tariff announcement, dubbed as 'T-Day', represents a significant point of uncertainty. The markets seem to have anticipated some of the effects, yet the initial ramifications may be severe until potential concessions or exclusions are declared."

Highlighting further concerns, Akshay Chinchalkar, Head of Research at Axis Securities, stated, "Despite the possibility of softened reciprocal tariffs, the anticipation is still fueling volatility. As major investors adjust their portfolios ahead of the announcement, this has likely contributed to the day's erratic trading patterns."

Sundar Kewat, a Technical and Derivatives Analyst at Ashika Institutional Equity, reiterated the sentiment by noting the pervasive uncertainty stemming from potential global trade disruptions. "Investor caution is palpable, involving high volatility as the market braces for the US's tariff decisions," he noted.

On a sectoral front, stocks such as IndusInd Bank, Trent, Bajaj Auto, Jio Financial, and HDFC Life emerged as notable gainers on the NSE. Conversely, HCL Technologies, Bajaj Finserv, HDFC Bank, Shriram Finance, and Bharat Electronics posted notable declines. Sector indices suffered as well, with IT, realty, and consumer durables down by 2% to 3%, save for media, oil & gas, and telecom sectors that held firm. (ANI)

(With inputs from agencies.)