Markets have declined for the fifth consecutive day amid concerns that US President Donald Trump's trade war could also impact India. Foreign investors have ramped up their sales in India and other markets to reallocate their funds as Trump's policies continue to drive up interest rates in the US. Yesterday, the key Indian market indices dropped by 1.32%, while the broader market fell by 3.5%.
The primary focus of the market is on the ongoing discussions between Indian Prime Minister Narendra Modi and US President Trump.
Today, retail inflation data will be released for both India and the US. Additionally, figures on industrial production and exports will be published, which could influence market trends.
In the derivatives market, the Gift Nifty closed at 23,183, down slightly from 23,190 this morning, suggesting that the Indian market may open in profit today.
European markets also saw gains on Tuesday. The European Union announced plans to introduce alternative tariffs in response to Trump's tariff order.
The US market showed mixed performance yesterday. The Federal Reserve Chairman’s comments to the US Senate, stating that there’s no immediate rush to cut interest rates, resulted in lower bond prices and spurred investment in them. The stock market remains uncertain.
Today, the US retail prices report, along with unemployment and wholesale price data, will be closely watched.
The Dow Jones Industrial Average rose by 123.24 points (0.28%) to 44,593.65, the S&P 500 index climbed by 2.06 points (0.03%) to 6068.50, and the Nasdaq Composite Index dropped by 70.41 points (0.36%) to 19,643.86.
In futures, the Dow Jones and S&P 500 saw marginal increases, while the Nasdaq rose by 0.14%.
The US 10-year Treasury yield increased to 4.541%.
Most Asian markets showed gains in the morning, with Japan's Nikkei seeing a small rise.
The Indian market fell for the fifth consecutive day due to concerns over Trump's tariff threats. Both the major indices fell by 1.32% yesterday, while midcap and smallcap indices saw a decline of over 3%. All sectors of the economy reported losses. The Nifty 50 index, which had briefly fallen below 23,000 yesterday, closed slightly higher.
Currently, the Nifty 50 index is 12.20% below its all-time high, and the Sensex is down by 11.26%. The Nifty Smallcap 100 index has fallen 18.2%, while the Midcap 100 index is 16.4% lower. Market sentiment remains bearish.
Despite the budget and monetary policy failing to generate optimism, and the fading hopes of a less aggressive approach from Trump towards India, the withdrawal of foreign investors is also contributing to the market's downturn. In 2025, foreign investors have already pulled out $10 billion from the Indian market. While foreign investments were strong in 2023, with Rs 1.71 lakh crore flowing in, only Rs 2026 crore were invested in 2024. So far this year, Rs 89,000 crore has been withdrawn. This has led to an impression that the market may continue to correct.
Sectors such as realty, media, consumer durables, automobiles, pharma, healthcare, oil and gas, banking, finance, and IT were among the biggest losers.
On Wednesday, the Nifty closed 309.80 points (1.32%) lower at 23,071.80, while the Sensex dropped by 1018.20 points (1.32%) to 76,293.60. The Bank Nifty fell by 577.60 points (1.16%) to 49,403.40. The midcap index dropped 3.02% (1583.10 points) to 50,887.95, and the smallcap index closed 3.45% lower at 16,074.35.
Foreign investors sold Rs 4,486.41 crore in the cash market on Tuesday, while domestic funds and financial institutions bought Rs 4,001.89 crore.
The broader market's upward-downward ratio still favours a bearish outlook. On the BSE, 479 stocks advanced, while 3,533 declined. On the NSE, 326 stocks moved up, and 2,532 stocks fell.
If the Nifty weakens today, support may be found in the 22,800-22,700 range. However, if it rises, resistance could be encountered at 23,300.
Companies such as Ashok Leyland, Bharat Forge, Power Finance Corporation, Hindustan Aeronautics, Siemens, Honasa Consumer, Godrej Industries, Jubilant Food, Bajaj Hindustan, Crompton Greaves, Finolex Cables, Graphite India, Muthoot Finance, Natco Pharma, RCF, and RVNL will release their third-quarter results today.
Berger Paints reported a 3% decline in revenue and a 1.5% drop in net profit.
Kirloskar Oil Engines posted a 21% decline in net profit despite a 4.5% increase in sales.
Gopal Snacks saw a 70% drop in net profit, although its revenue rose by 7%.
IRCTC reported a 14% increase in net profit, with a 10% rise in revenue.
Gold prices reached a record high of $2,945 per ounce before experiencing a sharp decline, closing at $2,897.60. US investment trusts, as well as central banks, were eager to buy gold, and there were reports of substantial gold inflows into the US. Many view gold as the only safe investment amidst Trump's tariffs.
Gold fell to $2,895 per ounce this morning.
In Kerala, gold prices surged by Rs 640 per gram on Tuesday, reaching a record high of Rs 64,480. However, by the afternoon, the price fell by Rs 400 to Rs 64,080, following the international price movement.
Silver prices stood at $31.87 per ounce.
The rupee, which had been on a downward trend for weeks, made a strong rebound yesterday. The dollar, which began trading at Rs 87.35, later dropped to Rs 86.63, recording a 1% gain for the rupee. After a slight decline, the dollar closed at Rs 86.83, representing a gain of 63 paise.
The Reserve Bank of India’s strong intervention in the market helped support the rupee. The RBI injected $12 billion into the market over Monday and Tuesday. The central bank's actions are based on the belief that exporters will sell dollars if the rupee depreciates, and that exporters may be hoarding dollars while speculators take advantage of the rupee's fall. Whether this intervention has been successful will become clear in the coming days. However, pressure on the rupee may continue.
The dollar index, which rose to 108.44 yesterday, fell to 107.92, and closed at 107.96. This morning, the index increased to 108.02.
Crude oil prices continued to rise yesterday. Brent crude oil gained 1.49% to $77, though it fell to $76.70 this morning. WTI crude rose to $73.01, while UAE's Murban crude reached $79.40.
Cryptocurrencies remain volatile. Bitcoin fell below $95,900 yesterday, while Ether dropped to $2,605.
Industrial metals also saw declines yesterday. Copper fell by 0.98% to $9,239.16 per tonne, while aluminium dropped 0.79% to $2,637.53. Lead rose by 0.13%, but tin, nickel, and zinc all saw losses.
Sensex 30: 76,293.60 (-1.32%)
Nifty50: 23,071.80 (-1.32%)
Bank Nifty: 49,403.40 (-1.16%)
Midcap 100: 50,887.95 (-3.02%)
Smallcap 100: 16,074.35 (-3.45%)
Dow Jones: 44,593.60 (+0.28%)
S&P: 6068.50 (+0.03%)
Nasdaq: 19,643.90 (-0.36%)
Dollar ($): ₹86.83 (-₹0.65)
Dollar Index: 107.96 (-0.36%)
Gold (ounce): $2897.60 (-$10.70)
Gold (Pawn): Morning ₹64,480 (+₹640), Afternoon ₹64,080 (-₹400)
Crude (Brent): $77.00 (+$1.13)
