Stock Market Today: Indian stock markets faced significant volatility on Tuesday, with the BSE Sensex initially plummeting by over 800 points in the early hours of trading. However, the index briefly retraced its losses before again dropping to around 700 points by 1:35 PM, as investor concerns over Donald Trump's potential trade tariffs resurfaced.
Sensex and Nifty React to Trump's Trade Tariffs
The BSE Sensex, after a brief recovery, was still down by over 800 points, touching an intraday low of 76,225. Similarly, the NSE Nifty fell by 217 points, reaching 23,128. Market experts highlighted that investor caution was driven by the uncertainty surrounding Trump's economic policies, particularly regarding the possible implementation of 25% tariffs on Canada and Mexico. While Trump’s inaugural address focused on immigration, his stance on tariffs remained unclear, adding to market jitters.
Large-Cap Stocks Contribute to Market Decline
Several major stocks weighed heavily on the Sensex, dragging the index lower. Companies like Zomato, Reliance Industries (RIL), State Bank of India (SBI), Bajaj Finance, ICICI Bank, Tata Steel, and Bharti Airtel were among the worst performers. These stocks contributed significantly to the negative market sentiment, with the number of declining stocks far outweighing those that gained.
Corporate Earnings and Market Weakness
The market’s weakness was further compounded by disappointing corporate earnings reports for the third quarter. Many companies revealed weaker-than-expected results, leading to a sell-off. Reliance Industries, which has the largest weight in the Sensex, saw its stock fall by over 1.5%, contributing significantly to the overall decline. HDFC Bank, ICICI Bank, and SBI also experienced notable losses.
As of 1:35 PM, the Sensex remains over 700 points down, and investor sentiment continues to be weighed down by the uncertainty surrounding Trump’s trade tariff policies, coupled with weaker-than-expected corporate earnings.