The Indian stock market opened in the red on Tuesday. The Sensex fell by 258 points and the Nifty by 68 points. The notice by US President Donald Trump regarding the imposition of a 25% additional tariff on India and the weakness in global markets put pressure on the market. Meanwhile, gold prices reached a two-week high due to the fall in the dollar.
Stock Market Today: The Indian stock market opened on a weak note on Tuesday. The Sensex was in the red at 81,377 points and the Nifty at 24,899 points. Investor sentiment was affected by the notice issued by the Trump administration to impose a 25% additional duty on goods imported from India. The decline in Wall Street and Asian markets also added to the pressure. On the other hand, gold prices rose sharply to a two-week high due to the weakening of the dollar. The market closed in the green on Monday, but global cues were weak on Tuesday.
Sensex and Nifty Open in the Red
On Tuesday, the Sensex opened at 81,377.39 points. This was down 258.52 points or 0.32% compared to the previous trading day. The Nifty also had a weak start and opened at 24,899.50 points. On Monday, the Nifty closed at 24,967.75 points. Thus, it fell by 68.25 points or 0.27%. Most sectors were in the red in early trade and investors appeared cautious.
Gains on Monday
The market started the week bly on Monday. Buying was seen in the shares of IT sector companies. The Sensex closed 0.40% or 329.06 points higher at 81,635.91 points. The Nifty, on the other hand, closed 0.39% or 97.65 points higher at 24,967.75 points. This strength of Monday could not be maintained in the market today.
On the NSE International Exchange, Gift Nifty was trading down 20 points or 0.08% at 24,917 at 8.50 am on Tuesday. This had already indicated that the Indian stock market could have a negative start today.
Decline in US Markets
Trading on Wall Street closed lower on Monday. Investors are keeping an eye on the US economic reports coming this week and the Federal Reserve's interest rate policy. Along with this, the market is also awaiting Nvidia's quarterly earnings report in the technology sector. After the gains on Friday, indices like the Dow Jones and S&P 500 came under pressure on Monday.
Asian markets also saw a decline on Tuesday. Investors are concerned that the Federal Reserve may slow the pace of interest rate cuts after the report related to inflation in the US. As of morning Tokyo time, S&P 500 futures showed no significant change, while Australia's S&P/ASX 200 futures fell 0.2%.
Rise in Gold Prices
The dollar weakened late on Monday, pushing gold prices to a two-week high. The dollar fell after US President Donald Trump announced the removal of Federal Reserve Governor Lisa Cook. Investors increased purchases of gold as a safe investment, which led to a rise in gold prices.
Pressure on the Indian Market
The new tariff decision of the Trump administration has weakened the sentiment of the Indian market. The US has issued a notification to impose an additional 25% import duty on goods coming from India, which will be effective from August 27. After this decision, a total of 50% tariff will have to be paid on goods going from India to the US. This may affect Indian export companies. This is the reason why the Sensex and Nifty opened in the red on Tuesday and a decline was recorded in early trade.
