Indian stock markets faced a steep decline on Monday, with the BSE Sensex falling by 5.19 percent and the broader Nifty dropping by 5 percent. This was triggered by trade tensions between the US and China, with the former imposing reciprocal tariffs on various trading partners, including India. The growing uncertainty and fears of a possible recession have led to a downturn in global markets, with major indices such as Hang Seng, Shanghai Composite, Nikkei 225, and KOSPI also witnessing a sharp decline. The heightened volatility in the markets has caused a heavy selling pressure in the Indian market, with the Nifty Smallcap 100 and Nifty Midcap 100 also facing significant losses.
The BSE Sensex and Nifty50 experienced steep declines at the market open on Monday, following global markets' reaction to fears of an escalating trade war caused by US President Donald Trump's tariff policies. By mid-day, the BSE Sensex had plunged over 3,000 points and the Nifty50 had tumbled 5%, marking its steepest drop since June. This decline resulted in a loss of Rs 20.16 lakh crore in the market capitalisation of listed companies on the BSE. With Asian shares also nose-diving and US futures predicting further weakness, it seems that markets are responding to the sell-off seen in the US on Friday, which resulted in a $5 trillion market capitalisation erosion.
The Indian stock markets took a nosedive on Monday morning amid concerns over the impending US reciprocal tariffs. The Nifty 50 and Sensex were trading significantly lower in early trade, with all sectoral indices in the red and IT and metal sectors taking the biggest hit. While some recovery was seen after the initial crash, major companies like Tata Steel and Tata Motors continue to suffer losses.
The US-India trade war has taken a toll on Indian stock markets as they continue to decline. President Trump's 27% tariff on Indian imports, although lower than tariffs on other Asian countries, has caused major dips in the BSE Sensex and Nifty. The impact of this trade war has also been felt in Asian markets, with Nikkei 225 and Kospi experiencing drops in the aftermath of Wall Street's shock. Stay updated on the latest developments in this trade dispute by following Screen Digital on YouTube.
The Managing Director and CEO of BSE has stated that they will take feedback from market participants before making any changes to the derivatives expiry day. This comes after the National Stock Exchange's recent decision to shift the expiry day to Monday. BSE's focus is on providing what the market wants and creating a well-regulated and investor-friendly marketplace, rather than just increasing volumes. They also aim to make Indian markets more attractive to both domestic and global investors in the next two years.
Shares of lubricant maker Castrol India, a unit of British Petroleum (BP), surged over 13% after reports of Saudi Arabia's state-owned oil giant Aramco considering taking ownership of BP's Castrol brand. This news comes as BP announced a strategic evaluation of its Castrol division, with a potential valuation of $10 billion, and Aramco showing interest in expanding its presence in key growth markets. The stock price rose for the fourth consecutive session, as the BSE Sensex and NSE Nifty also saw significant gains mid-day.
The benchmark indices in India, Sensex and Nifty, surged thanks to a strong performance by Vedanta, whose impressive Q3 results led to investor sentiment. However, the Economic Survey 2025 highlights potential risks to Indian markets, with high valuations and excessive optimism in the US stock market. All eyes are now on the upcoming Budget for further cues, as the Indian market is sensitive to fluctuations in the US market.
Finance Minister Nirmala Sitharaman presented the Union Budget for 2025-26, highlighting efforts to accelerate growth and provide equitable development. The Indian economy's promising growth among major global economies was noted, with the next five years seen as a chance to achieve ‘Sabka Vikas’. The proposed development measures will cover 10 key areas, with a special focus on the poor, youth, farmers, and women. Additionally, the Govt will launch programs for Atmanirbharta in pulses and enhance credit accessibility for farmers through the PM Dhan Dhyan Krishi Yojana. Stock markets also rallied in response, with major gainers including ITC Hotels, IndusInd Bank, and Mahindra & Mahindra.
The stock market saw a sharp decline in the morning hours of trading on Monday, with the Sensex plunging close to 800 points and the Nifty tanking over 250 points. This was attributed to fresh foreign fund outflows and the cautious stance of investors ahead of the upcoming earnings season. The broader markets also traded in the red, with the Nifty Microcap 250 leading the losses and the Nifty Metal and Realty indices dominating in the red. Meanwhile, the global oil benchmark Brent crude saw a slight dip, while the US markets ended on a positive note on Friday.
The Indian stock market has been buzzing with excitement as several big names such as Mamata Machinery, Diffusion Engineers, Swiggy, and more have announced their initial public offering (IPO). The latest being Mamata Machinery, whose IPO was fully subscribed within minutes of its launch. The trend continues as companies like Diffusion Engineers report being over-subscribed by over 27 times. It is evident that investors are eager to get their hands on these IPOs, with some even being over-subscribed by up to 76 times. It's a clear indication of the market's confidence in these companies and their potential for growth.