Stock Market Today: Sensex Falls 756 Points, Nifty Below 23,500 as Investors Turn Cautious Over US Tariffs and Rising Oil Prices
The Indian stock market witnessed a sharp decline on Thursday, halting its winning streak as both BSE Sensex and Nifty50 ended the day lower. The benchmark BSE Sensex fell by 756 points or 0.97% to close at 77,259.64, while Nifty50 slipped below the 23,500 mark, closing at 23,464.55 with a decline of 204 points or 0.86%. This retreat follows a strong seven-day rally, as investors turned cautious amid uncertainties surrounding upcoming US tariff policies, rising oil prices, and profit-booking activities.
Market participants exhibited a wait-and-watch approach due to concerns over potential new US tariffs under President Donald Trump’s administration. Despite indications that not all proposed tariffs would be implemented by April 2, the lack of clarity has led to global market instability. Indian sectors with high exposure to the US, such as IT and pharmaceuticals, faced notable selling pressure due to trade uncertainty. This cautious sentiment prompted investors to lock in profits after the recent surge, which saw both Nifty50 and Sensex gaining approximately 5.7% in seven consecutive sessions. As valuations climbed rapidly, traders adopted a more cautious stance, leading to a sell-off in heavyweight stocks.
Another major factor weighing on market sentiment was the surge in global crude oil prices. Brent crude futures rose to $73.22 per barrel, while US WTI crude climbed to $69.16 per barrel, marking three-week highs. The price surge was driven by supply concerns following the US government’s stricter restrictions on Venezuelan and Iranian oil exports, coupled with a substantial drop in US crude inventories. Higher oil prices pose risks for India’s economy by increasing import costs, potentially impacting inflation and corporate profitability, particularly in fuel-sensitive sectors such as aviation and logistics.
The decline was also led by underperformance in banking, financial, and IT stocks. Heavyweight stocks such as HDFC Bank, Infosys, Axis Bank, Kotak Mahindra Bank, Reliance Industries, Bajaj Finance, and ICICI Bank collectively contributed to a 440-point drag on the Sensex. IT shares, in particular, faced pressure due to ongoing global economic uncertainties and the strengthening US dollar.
Adding to market pressures, the US Dollar Index rebounded to 104.31 after briefly dipping to 103, leading to concerns over foreign investment outflows from emerging markets like India. A stronger US dollar often results in capital flight to safer assets, impacting developing economies. Furthermore, the US 10-year Treasury yield increased to 4.32% from 4.25%, making US investments more attractive and diverting funds away from Indian equities.
Despite the market downturn, analysts remain optimistic about stability in the near future, supported by foreign institutional investor (FII) inflows, domestic economic revival, and reasonable valuations. With markets adjusting to global uncertainties, investors will be closely monitoring upcoming US policy announcements, crude oil price movements, and global interest rate trends for further cues.
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