Indian Market Slumps as Uncertainty Looms Over Trump Tariffs

Indian stock benchmarks experienced a marginal decline on Wednesday as they fluctuated within a tight range, reflective of widespread profit booking and a cautious investor outlook amid ongoing uncertainty concerning Trump tariffs.

The Sensex concluded the trading session at 80,543.99 points, marking a fall of 166.26 points or 0.21 percent, while the Nifty settled at 24,574.20 points, down 75.35 points or 0.31 percent.

The Reserve Bank of India's monetary policy announcements had little impact on the markets, aligning largely with expectations. Noteworthy gainers within the indexes included Asian Paints and HDFC Life, which displayed resilience amid broader market frailty. Conversely, Wipro and Sun Pharma emerged as significant laggards, exerting downward pressure.

Sector analysis revealed overwhelmingly negative breadth, with all sectoral indices, except Nifty PSU Bank, closing in the red. Nifty Pharma and Nifty IT sectors were the poorest performers, revealing mounting selling pressure in defensive and technology stocks.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, observed, "This tight range-bound movement suggests traders await a clear directional trigger before committing to fresh positions." Shah highlighted the lack of clarity surrounding trade negotiations between India and the United States as a key driver of the prevailing cautious sentiment.

According to Shah, the ongoing lack of clarity has resulted in subdued volatility and restricted price action, leaving both investors and traders on edge. A report from Nuvama indicated that India's equity markets display signs of fatigue, as stretched valuations clash with slowing profit growth, diminishing the country's attractiveness among emerging markets.

Over recent sessions, benchmark indices have encountered notable selling pressure at elevated levels. Analysts have pointed to uncertainty surrounding the new interim deal between India and the U.S., accentuated by President Donald Trump's assurances of further tariffs beyond the already announced 25 percent increase.

(With inputs from agencies.)