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Indian share market started the week, the first session after the presentation of Union Budget 2024 on February 1, on a bearish note, with benchmarks BSE Sensex and NSENifty falling nearly 1% in early trade. The sentiment was dented by weak global cues as Asian stocks plummeted up to 4% today amid trade war fears after new US tariffs on goods from Canada, Mexico and China. The market also witnessed sectoral repercussions of the announcements made in the Budget, with metal, realty, IT, bank, oil and gas, and pharma indices falling in the range of 1-3%.
At 10:00 AM, the 30-share Sensex was trading 677 points lower at 76,828, and the Nifty50 dropped 250 points to 23,232 level. The broader market were also reeling under selling pressure, with BSE midcap and BSE smallcap indices falling up to 1.8% in the first hour of trade so far.
Early today, the BSE Sensex opened lower at 77,063, and the NSE Nifty at 23,319 mark. In the first hour of trade so far, the benchmark indices fell up to 1%, with Sensex hitting a low of 76,756 and Nifty slipping to 23,226.
Among the individual stocks, NTPC, PowerGrid, L&T, Tata Steel, Tata Motors, and Reliance Industries were among top losers. On the other hand, ITC Hotels, Maruti Suzuki India, Bajaj FinServ, Titan, and Nestle India topped gainers chart.
"Despite an excellent Budget the market will be under pressure from the Trump tariffs and the heightened global uncertainty these ‘initial round of tariffs’ has triggered. It is important to understand that the 25% tariffs imposed on Mexico and Canada are to punish them for issues like immigration and illicit trade in fentanyl,” V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
He believes that Trump may use tariffs again against other countries on non-trade issues. “For now, India is not affected. Therefore, the impact on the Indian market will be less. But the spike in the dollar index to above 109.6 will trigger more selling by FIIs putting the market under pressure.”
On the global front, markets in Asia-Pacific region started the week on a negative note, falling up to 4% following weak cues from Wall Street, amid looming concerns about trade war. Taiwan’s Weighted stock index was the worst performer with a 4% loss, followed by South Korea’s KOSPI (2.9%), Japan’s Nikkei 225 (2.5%), and Hong Kong’s Hang Sang tumbled 1.5%. Meanwhile, Australia’s ASX 200 ended 1.65% lower.
On Friday, Wall Street closed lower in volatile trade after the White House confirmed that tariffs on Mexico and Canada would take effect from February 1. President Donald Trump’s administration is set to impose 25% tariffs on Canadian and Mexican imports, while he has also warned BRICS countries that they will face 100% tariffs if they replace the U.S. dollar with their other currency. Weighed down by the development, the Dow Jones Industrial Average closed 0.75% lower, the S&P 500 dropped 0.5%, and the Nasdaq Composite lost 0.3%.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)
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