By afternoon, the Sensex had fallen over 700 points to touch an intraday low of 84,230, while the Nifty 50 had slipped over 200 points to below 25,950.
Market capitalization of all listed companies on BSE in four days Rs. 7.19 lakh crore reduced to Rs. 474 lakh crores.
Here’s why the market is down today
1) Trump’s Russia Tariff Bill increased heat on India
US President Donald Trump has signaled support for a bipartisan Russia sanctions bill that could impose at least a 500% duty on Russian imports, using it as leverage against countries including India, China and Brazil to buy discounted Russian oil. While the legislation has not yet passed, Senator Lindsey Graham indicated it could face a vote as early as next week.
Trump also flagged possible higher tariffs on Indian goods if New Delhi does not address US concerns over Russian oil imports. Currently, the US has already imposed tariffs of up to 50% on Indian products, with half linked to India’s imports of Russian crude.
Also Read: Trump backs Russia sanctions bill proposing 500% tariffs; India, China and Brazil are targeted for oil purchases
US-India trade relations are still complicated. Trump said that Prime Minister Narendra Modi personally raised the issue of early delivery of American-made Apache helicopters with him and addressed him as “sir”. “I mean, I had to come to India, sir. I’ve been waiting for five years; we’re changing it. We’re changing it,” Trump said, recalling the conversation on Tuesday. “India ordered 68 Apaches, and Prime Minister Modi came to meet me. Sir. May I see you, please? Yes.” He added that he “has a very good relationship with them,” while acknowledging the trade tensions: “He (Modi) is not so happy with me because, you know, they are paying a lot of tariffs now.”
The development reflects how US sanctions and tariffs are increasingly weighing on investor sentiment in India, adding another layer of uncertainty to an already jittery market.
2) Heavyweight stocks drag the benchmark
Selling pressure continued in megacap stocks on Thursday. HDFC Bank and Reliance Industries widened losses by up to 1%. Earlier this week, these two heavyweights fell as much as 4%, extending the overall benchmark decline.
Sectorally, the metal index fell 1.9% on the day, with all 15 components losing after record-highs this week. The IT index fell 1% following a 2.4% gain in the previous two sessions. Apparel retailer Trent also remained under pressure, down 1% after sliding as much as 9% earlier this week due to growing competitive concerns.
Recent market movements have been trendless with clear direction and actions in a few mega stocks disproportionately impacting the overall market, Dr. V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments said, “For example, Nifty yesterday fell mainly in two lines of 7.1 points despite positive institutional buying. Large volumes in these two stocks in stocks- derivative and cash market, in other words, the sharp fall in these stocks is more technical with their fundamentals.”
More to come…
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