Sensex falls 450 points, Nifty below 25,450 amid trade worries
What's the story
The Indian stock market witnessed a downward trend today, with both the Sensex and Nifty indices falling for the second consecutive session. The BSE Sensex fell 450 points to a low of 82,796.64 while the NSE Nifty 50 fell 162 points to slip below the crucial mark of 25,450. The decline is attributed to concerns over global trade uncertainties and continued foreign fund outflows.
Market dynamics
Market volatility and individual stock performances
The market volatility is expected to continue in the near term until there is clarity on the US-Europe conflict over Greenland tariffs. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said "a new development is likely today if the US Supreme Court ruling on Trump tariffs goes against President Trump." He added that "from a fundamental perspective, there are good news as well as not so good news for the market."
Economic outlook
IMF raises India's GDP growth rate amid market concerns
The International Monetary Fund (IMF) has raised India's FY26 GDP growth rate to 7.3%, indicating a strong economic performance despite headwinds. However, early Q3 results do not indicate a recovery in earnings growth, which is expected to change with auto companies' results as the sector has performed well in Q3. Geopolitical and geoeconomic issues will continue to influence market direction in the near term.
Global impact
Asian markets retreat amid trade-war concerns
Asian markets retreated today as renewed trade-war concerns dampened risk appetite. US Treasury yields hit their highest levels in over four months while the dollar remained under pressure amid selling of US assets. Investor unease intensified after President Trump revived tariff threats in pursuit of greater US control over Greenland, a move seen as risking fresh trade frictions with Europe.
Market response
Oil prices rise amid China's economic growth data
Oil prices rose today, buoyed by stronger-than-expected economic growth data from China that bolstered demand expectations. Brent crude futures rose 19 cents to $64.13 a barrel by 0100 GMT. The Indian rupee slipped marginally in early trading on Tuesday, weakening by one paisa to 90.91 against the US dollar and remained under pressure near the psychologically important 91 level as persistent flow-driven demand for dollars kept the risk of a slide toward record lows in focus.