US Tariffs Trigger Stock Market Decline: Sensex Plunges 322 Points, Nifty Falls 90 Points.
Stock Market: The Indian stock market experienced a significant downturn on Thursday, largely attributed to the implementation of US tariffs. Throughout the trading day, IT and auto sector stocks witnessed heavy selling pressure, weighing down the market. While the pharma sector displayed strength, it proved insufficient to prevent the market from closing in the red.
Sensex and Nifty Decline
The Sensex closed at 76,295, down 322 points or 0.42%, while the Nifty settled at 23,242, down 90 points or 0.39% during today's trading session.
Top 5 Gainers
Power Grid topped the Nifty 50 gainers on Thursday, surging 4.31% to close at ₹299.10. Sun Pharma followed closely, rising 3.29% to ₹1770. UltraTech Cement shares climbed 3.17% to close at ₹11,607. Cipla shares gained 2.99%, closing at ₹1496. Shriram Finance rounded out the top five, closing at ₹654.15 after a 2.31% increase.
Top 5 Losers
TCS experienced the sharpest decline, falling 3.98% to close at ₹3403. Tech Mahindra shares closed at ₹1369 after a 3.78% drop. HCL Tech shares fell 3.77% to ₹1470. Infosys shares decreased by 3.47%, closing at ₹1497. ONGC shares concluded the day down 2.93% at ₹243.31.
Sectoral Performance
The Nifty Pharma index closed up 2.25% at 21,424. The Bank Nifty closed up 0.49% at 51,597, while the Nifty FMCG index saw a modest 0.19% increase, closing at 53,807.
Conversely, the Nifty Auto index fell 1.14% to close at 21,164, and the Nifty IT index experienced a significant 4.21% decline, closing at 34,757.
Reasons for Market Decline
The primary driver of the market downturn was US President Donald Trump's decision to impose a 26% tariff on Indian imports. This decision significantly impacted the IT and auto sectors, as a substantial portion of their revenue stems from the US market. The tariffs will increase the price of Indian products, negatively affecting sales.
However, the pharma sector was excluded from the US tariff list, leading to a surge in pharma stocks. Investor interest shifted towards the pharma sector, resulting in considerable strength within this segment.
