The Indian stock market experienced a roller-coaster ride on Monday, ultimately ending the day in negative territory. Early gains were wiped out as a combination of profit-taking and negative global cues dampened investor enthusiasm.
The benchmark indices, Sensex and Nifty, initially opened flat, displaying considerable volatility throughout the trading session. However, selling pressure intensified during the second half, pushing both indices significantly lower. The BSE Sensex, after reaching an intraday high, plummeted over 700 points to a low of 74,031.93. It eventually closed at 74,115.17, down 217.41 points or 0.29%. Similarly, the Nifty 50 slipped below the crucial 22,500 mark, hitting a low of 22,429.05 before ending the day at 22,460.30, a decline of 92.2 points or 0.41%.
Several factors contributed to the market's downturn. A significant drop in US stock futures played a major role, signaling a potentially turbulent start to the trading week on Wall Street. Dow Jones were down over 400 points, S&P 500 futures fell over 60 points, and Nasdaq futures experienced a substantial decline of more than 250 points. This negative sentiment was further fueled by comments from US President Donald Trump, who, in an interview on Fox News, described the economy as being in a "period of transition."
Adding to the market's anxieties were renewed concerns about trade tensions. US Commerce Secretary Howard Lutnick's statement that a 25% tariff on steel and aluminum imports would take effect from Wednesday raised fears of retaliatory tariffs on Indian exports, potentially impacting various sectors.
"Global headwinds continue to drag the market sentiment, with the rise in US unemployment rates and tariffs leading to uncertainty, indicating that volatility is here to stay for the near term," commented Vinod Nair, Head of Research at Geojit Financial Services.
Weak cues from Asian markets also contributed to the negative sentiment. Hong Kong's Hang Seng index led the losses, dropping 1.8%, while the Shanghai Composite index slipped 0.2%. News that China's consumer prices declined in February for the first time in 13 months, reflecting weak demand in the world's second-largest economy, added to the concerns.
The broader market mirrored the weakness of the main indices, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling by approximately 1.53% and 1.97%, respectively.
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