Fueled by a weak global trends and new US tariffs on Chinese goods, Indian stock indices Sensex and Nifty fell on Monday, with key IT and FMCG shares declining.
Benchmark indices Sensex and Nifty closed lower on Monday as a result of a weak global trends in markets and the sale of IT and FMCG shares. This was in response to the announcement by US President Donald Trump of an additional 100% tariff on Chinese products effective November 1.
The 30-share BSE Sensex experienced a 173.77-point decline, or 0.21 percent, to conclude at 82,327.05, thereby terminating its two-day upward trend. It plummeted by 457.68 points or 0.55 percent to 82,043.14 during the day.
The 50-share NSE Nifty lost 58 points or 0.23 percent to 25,227.35, as 30 of its constituents closed lower, 19 closed with gains, and one closed unchanged.
Tata Motors, Infosys, Hindustan Unilever, Power Grid, Bharat Electronics, ITC, UltraTech Cement, and Tata Consultancy Services were the primary laggards among Sensex firms.
Nevertheless, Adani Ports, Bajaj Finance, Bajaj Finserv, and Axis Bank were among the beneficiaries.
South Korea’s Kospi, Shanghai’s SSE Composite Index, and Hong Kong’s Hang Seng all experienced declines in Asian markets. Tokyo’s equity markets were closed in observance of a holiday. Stock markets in Europe were transacting at a higher level.
The United States’ stock market experienced a substantial decline on Friday. The Nasdaq Composite experienced a 3.56 percent decline, while the S&P 500 experienced a 2.71 percent decline and the Dow Jones Industrial Average experienced a 1.90 percent decline.
Vinod Nair, Head of Research at Geojit Investments Limited, stated that the domestic markets began the week on a cautious note due to the risk-off sentiment that was prompted by the escalating US-China trade tensions and the ongoing US government shutdown.
Brent crude, the global oil benchmark, increased by 1.77 percent to USD 63.84 per barrel.
According to exchange data, foreign institutional investors (FIIs) acquired shares valued at Rs 459.20 crore on Friday.