Trump Tariff Impact: Indian Markets Take a Hit; Sensex Drops Below 80,000, Nifty Also Decline

Mumbai (The Uttam Hindu): US President Donald Trump increased the 25 percent tariff imposed on India to 50 percent on Wednesday, and its effect gradually started showing on the Indian stock market. When the market opened in the morning, initially it seemed as if the tariff decision did not have much effect. Both the Sensex and Nifty indices opened with a slight decline and were seen trying to recover for some time.

The Sensex opened at 80,262 as compared to its previous close of 80,543.99 and reached 80,421 within a few minutes. But as the business progressed, the impact of tariff on the market became clearly visible and the decline accelerated. By 11 am, the Sensex slipped more than 450 points to reach 79,979.05 and then it fell further by 679 points to trade at 79,864.48.

The condition of Nifty was also similar. It opened with a slight decline at 24,464 as compared to the previous close of 24,574, then climbed to 24,542 after a while. But the recovery could not last and within no time this index also fell by 225 points to 24,354.

The impact of Trump's tariff was not just limited to the index, but shares of many big companies also saw a sharp decline. Adani Ports fell by nearly 3 percent, Tata Motors by 2.5 percent and Tata Steel by 1.5 percent. On the other hand, the fall was even more severe in mid and smallcap shares. Shares of BHEL fell by nearly 6.13 percent, BayerCrop fell 5.20 percent, Concor fell by 4 percent and Emami by 3 percent. Shares of GPT Health, GNFC, Lumax India and Sigachi Industries also registered a decline of 7 to 10 percent.

However, it was a matter of relief that the Indian currency Rupee seemed unaffected by Trump's decision. The Rupee opened at 87.69 with a gain of 3 paisa against the dollar.

Experts believe that the market is already in an oversold situation and investors have already digested the fears related to Trump's tariff to a large extent. This is the reason that after the initial commotion, there was a decline, but it remained within a limited range and no major panic situation was created in the market.

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