On Tuesday, the Indian stock market closed lower, heavily influenced by big losses in major companies like Reliance Industries, ICICI Bank, and Zomato. The situation was made worse by concerns following U.S. President Donald Trump’s announcement of trade tariffs on neighboring countries shortly after he took office, which made investors nervous.
The BSE Sensex, a key market index, dropped by 1,235.08 points (1.60%), ending at 75,838.36. The Nifty 50 index, another important measure, also went down, losing 320.10 points (1.37%) to close at 23,024.65.
Analysts’ Thoughts:
Vinod Nair, who leads research at Geojit Financial Services, said the market faced a tough day with a lot of ups and downs because of Trump’s tariff announcements. He noted that poor quarterly earnings reports and a weaker Indian Rupee (INR) might lead to more foreign investment outflows. Smaller stocks didn’t perform well either, and the real estate sector suffered due to disappointing forecasts. Banks were feeling pressure because of worries about bad loans, and the expectation of rising interest rates in Japan added to the market’s cautious mood.
US Market Update:
Meanwhile, on Wall Street, the main indexes saw slight gains as investors assessed Trump’s actions since his inauguration, particularly his plans for trade. He didn’t specify exact tariffs but hinted at possible duties on goods from Canada and Mexico starting on February 1. Investors are concerned that these tariff policies might lead to a global trade conflict and increase inflation.
Technical Analysis:
The Nifty started the day on a positive note but faced selling pressure and closed with a significant drop. Technical analyst Vatsal Bhuva pointed out that the Nifty stayed above a critical support level of 23,000 but is at risk of falling to pre-election levels if it closes below this mark.
Most Active Stocks:
In terms of trading volume, Zomato, Dixon Technologies, HDFC Bank, and ICICI Bank showed high activity, indicating they were among the most traded stocks on the NSE.
Stocks with Buying Interest:
Some companies, like Global Health and Aavas Financiers, saw strong buying interest from investors.
Market Sentiment:
Overall, market sentiment was negative, with most stocks declining. Out of 4,088 stocks traded on the BSE, 2,788 went down, while 1,187 improved, and 113 stayed the same.
Leave a Reply