Indian Market Falls as Tariff Concerns Weigh on Shares

Indian shares fell as tariff developments sparked concerns. The S&P/BSE Sensex and NSE Nifty declined, while select stocks saw mixed results following new tariffs announced by President Trump.

Date: 10-02-2025

AI Rating: 5

Market Overview: The Indian stock market experienced a notable decline on Monday, largely attributed to investor reactions surrounding newly imposed tariffs by the U.S. government. The S&P/BSE Sensex closed down by 548.39 points, a drop of 0.70 percent, while the NSE Nifty dropped by 178.35 points, or 0.76 percent. The rupee's depreciation hitting a record low of 87.95 against the U.S. dollar adds further pressure on market sentiment.

Impact of Tariffs: The announcement of new 25 percent tariffs on steel and aluminum imports by U.S. President Donald Trump has raised apprehensions regarding a potential escalation of a global trade conflict. The decision is likely to have widespread repercussions on various sectors and could affect investors' confidence globally. As China implements retaliatory tariffs, uncertainties about future trade relationships loom large, potentially impacting revenues for companies involved in international trade.

Stock Performance: Several stocks within the S&P 500 index experienced significant declines. For instance, ONGC, Tata Steel, and Titan Company saw their prices drop between 2-4 percent, suggesting that these firms may be particularly vulnerable to external shocks from tariff implications. In contrast, Kotak Mahindra Bank managed to close up by 1.7 percent, indicating some resilience amid broader market declines. However, the mixed performance within individual stocks indicates a lack of uniformity in market expectations concerning future earnings and economic conditions.

Goldman Sachs raised target prices for Mahindra & Mahindra and Ola Electric Mobility following their Q3 results, yet both companies also faced price drops of 2.1 percent and 3.5 percent respectively, pointing to investor caution despite analysts' optimism.

Stocks: TATASTEEL ONGC KOTAKBANK BRITANNIA AIRTEL