Domestic equity benchmarks Sensex and Nifty50 settled lower on Thursday amid high volatility on account of the expiry of July futures and options (F&O). The two indices, however, closed off their respective day’s lows, with Sensex staging a sharp intraday rebound of over 1,100 points as investors hoped the Trump tariffs would likely be temporary.
The initial sell-off was triggered by a sharp deterioration in investor sentiment following US President Donald Trump’s announcement of a 25 per cent tariff on Indian imports, coupled his warning of an ‘additional penalty’ on India’s energy and defence dealings with Russia.
At close, the BSE Sensex was down 296.28 points, or 0.36 per cent, at 81,185.58. The NSE Nifty50 declined 86.70 points, or 0.35 per cent, to end at 24,768.35.
Tata Steel led Sensex losers, falling 2.70 per cent to Rs 157 apiece. Sun Pharma fell 1.96 per cent, followed by NTPC (down 1.50 per cent), Adani Ports (down 1.37 per cent), Reliance Industries (down 1.34 per cent), and Asian Paints (down 1.04 per cent).
Ajit Mishra – SVP, Research at Religare Broking Ltd said the markets witnessed volatile swings on the monthly expiry day and ended marginally lower amid mixed cues. The surprise tariff announcement by the US President on India initially triggered a knee-jerk reaction.
“However, a gradual recovery in heavyweight stocks across sectors helped the index briefly turn positive. Selling pressure resurfaced in the final hours, once again putting bulls on the back foot,” Mishra said.
“All major sectors, except FMCG, came under pressure, with pharma, metal, and energy emerging as the top losers. The broader indices also resumed their corrective phase, each losing over a percent,” Mishra said.
“As the new series begins, the market is likely to consolidate, but global developments and corporate earnings will continue to drive volatility. We maintain our cautious stance and recommend a stock-specific approach, given the mixed trends across sectors. Traders should also avoid averaging down on loss-making positions,” Mishra added.
Reliance Industries, HDFC Bank, Bharti Airtel, Larsen & Toubro, and Sun Pharma emerged as the top contributors to the Sensex’s decline.
Among sectoral indices, the BSE Bankex fell 0.21 per cent, or 130.66 points, to end at 62,099.81. BSE Oil & Gas declined 1.47 per cent to settle at 26,796.97.
Vinod Nair, Head of Research at Geojit Investments Limited, said following a turbulent start driven by fresh tariff threats, the Indian market started on a pessimistic note. However, domestic market attempted a strong recovery but by the end of the day it closed with marginal losses, on a monthly expiry day.
“Investors gravitated toward domestically oriented, non-discretionary players, especially FMCG, which offered attractive valuations, demand outlook and relative insulation from tariff risks. In contrast, oil & gas stocks were the worst hit due to US warnings over Indian energy imports. Overall, the market reflected a cautious yet selective approach. Market continues to hold high hopes for a more favorable tariff outcome in the near-term,” Nair said.
Out of 4,153 stocks that traded on the BSE today, 1,602 advanced, 2,415 declined while 136 remained unchanged.
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