Indian stock markets opened with a steep fall on Monday. The sharp drop followed renewed tariff threats from US President Donald Trump, which shook investor confidence.
As a result, the Sensex slipped more than 700 points to 80,688. Likewise, the Nifty plunged over 200 points to 24,538. This sharp decline came in the middle of India’s quarterly earnings season.
Foreign Outflows Deepen Market Pain
Moreover, foreign investors rushed to sell Indian stocks. On Friday alone, Foreign Institutional Investors (FIIs) offloaded shares worth nearly ₹6,450 crore, according to exchange data.
Consequently, several major stocks suffered heavy losses. HDFC Bank, HCL Tech, Infosys, Tech Mahindra, and Tata Steel ranked among the worst performers. In contrast, Hindustan Unilever, Adani Ports, and Mahindra & Mahindra managed modest gains.
Global Cues Add to Pressure
In addition, weak global signals added pressure. Other Asian markets like Japan, South Korea, Hong Kong, and Shanghai also traded lower. Investors reacted to the fear of higher US steel tariffs.
Meanwhile, US markets ended mixed last week, which further contributed to the cautious sentiment in Asia.
Trump’s Tariff Threat Shakes Markets
Last week, Trump addressed a rally in Pennsylvania. During the speech, he announced plans to double import tariffs on steel and aluminium from 25% to 50%.
He said, “We are going to be imposing a 25 per cent increase. We’re going to bring it from 25 per cent to 50 per cent – the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States.”
Furthermore, Trump accused China of going back on its commitments. He claimed Beijing had failed to roll back tariffs and trade restrictions as agreed.
Domestic Earnings May Offer Hope
Despite the negative global cues, experts say strong domestic earnings could support Indian markets in the short term. However, the immediate outlook remains cautious due to rising global trade tensions.
