Stock Market: Sensex Tanks Over 750 Points, Nifty Below 23,000; Zomato Down 2%
Indian benchmark equity indices, Sensex and Nifty50, started the week on a negative note, opening lower for the second consecutive session on Monday.
The decline was driven by concerns over disappointing corporate earnings, uncertainty around U.S. trade policies, and ongoing foreign fund outflows. At 10:26 am, the BSE Sensex dropped 600.20 points, or 0.79%, to 75,590.26, while the Nifty50 fell by 191.05 points, or 0.83%, to 22,901.15.
Global Cues
Markets in the Asia-Pacific region showed a mixed performance, with Australia, Taiwan, and South Korea closed for holidays. Japan’s Nikkei 225 dipped 0.33%, while the Topix gained 0.62%. Hong Kong’s Hang Seng index rose by 0.85%, while the CSI 300 saw a slight decline of 0.07%.
In the currency markets, the US dollar weakened on Friday, marking its worst week since November 2023, driven by reduced concerns over tariffs from the Trump administration. However, those worries resurfaced after Trump stated his intention to impose new measures on Colombia. Trump’s comments about a “friendly” conversation with President Xi Jinping and his belief that a trade deal with China could be reached gave mixed signals. The US dollar dropped by as much as 0.8% against a basket of currencies before reducing losses to close down 0.65%, ultimately posting its biggest weekly loss since November, down 1.8% from Monday.
Some analysts cautioned that the dollar could strengthen if the US changes its tariff or interest rate policies. On Monday, the dollar firmed as traders weighed the potential impact of Trump’s tariff plans, with the Federal Reserve expected to keep interest rates steady. The dollar index, which measures the US currency against six major currencies, stood at 107.6, still close to the one-month low it reached last week.
Global stocks had a lackluster session, with the MSCI world index little changed. US stocks showed similar weakness, with the S&P 500, Dow Jones, and Nasdaq all posting losses. Meanwhile, China’s stock markets and the yuan strengthened after Trump’s remarks, with the blue-chip index up 0.8% and the yuan gaining 0.7% to 7.239 against the dollar in offshore trading.
Oil prices stabilized after Trump mentioned that he would ask Saudi Arabia and OPEC to lower oil prices. US crude futures edged up to $74.66 a barrel, while Brent crude increased 0.3% to $78.50. Amelie Derambure, a senior portfolio manager at Amundi, noted that Trump’s pro-America policies, which call for lower oil prices, could benefit other global markets, including Europe. European stocks showed a slight boost, with the STOXX 600 rising 0.3%, driven by strong earnings from Burberry, though it later retreated to a flat finish.