MUMBAI: Stock markets plunged on Tuesday, with the Sensex sinking 1,390 points as selling intensified in IT and private banking stocks amid uncertainty over the anticipated rollout of US reciprocal tariffs on April 2 – termed ‘Liberation Day’ by President Donald Trump.
Starting the new financial year on a weak note, the 30-share BSE Sensex dropped 1,390.41 points or 1.80 per cent to close at 76,024.51, with 28 of its constituents declining and only two advancing.
During the session, the index fell 1,502.74 points or 1.94 per cent to 75,912.18. The NSE Nifty slipped 353.65 points or 1.50 per cent to 23,165.70. Both indices recorded their steepest single-day losses in a month.
Trump plans to roll out a set of reciprocal tariffs on April 2, calling it “Liberation Day” for the US, which has fueled concerns over global trade disruptions.
Several Sensex stocks fall
Among Sensex stocks, HCL Tech, Bajaj Finserv, HDFC Bank, Bajaj Finance, Infosys, Titan, ICICI Bank, Sun Pharma, Reliance Industries, Larsen & Toubro, Tech Mahindra, and NTPC were among the biggest laggards. On the other hand, IndusInd Bank jumped over 5 per cent, while Zomato ended marginally higher.
“Amid heightened global volatility ahead of the anticipated US reciprocal tariff announcement tomorrow, the domestic market witnessed a significant sell-off today. The IT sector was hit hard due to its substantial exposure to the US market, and real estate stocks declined after Maharashtra revised ready reckoner rates upward, impacting property valuations,” said Vinod Nair, Head of Research at Geojit Investments.
“Uncertainty surrounding US reciprocal tariffs ahead of the April 2 deadline and their potential impact on global trade led to a negative opening, which worsened as the session progressed,” said Ajit Mishra, SVP, Research, Religare Broking.
The BSE midcap index fell 1.04 per cent, while the smallcap index edged up 0.07 per cent. Among sectoral indices, realty slumped the most at 3.05 per cent, followed by consumer durables (2.51 per cent), BSE Focused IT (2.42 per cent), IT (2.24 per cent), financial services (1.78 per cent), teck (1.73 per cent), and bankex (1.50 per cent). BSE telecommunication and oil & gas were the only gainers.
In the broader market, Vodafone Idea shares surged nearly 19 per cent to close at Rs8.10 after the government converted Rs36,950 crore of dues into equity, raising its stake in the struggling telco close to to 49 per cent.
Asian markets
Asian markets ended higher, with indices in Seoul, Tokyo, Shanghai, and Hong Kong posting gains. European markets also traded in positive territory, while US stocks closed mostly higher on Monday.
Foreign institutional investors (FIIs) offloaded equities worth Rs4,352.82 crore on a net basis on Friday, according to exchange data. Markets remained closed on Monday for Eid-Ul-Fitr.
Global oil benchmark Brent crude edged up 0.12 per cent to $74.86 per barrel.
For the financial year 2024-25, the Sensex has gained 3,763.57 points or 5.10 per cent, while the Nifty has risen 1,192.45 points or 5.34 per cent.
On Friday, the Sensex had declined 191.51 points or 0.25 per cent to settle at 77,414.92, while the Nifty dropped 72.60 points or 0.31 per cent to 23,519.35.
