Equity Markets Experience Decline Amid Global Concerns
On Tuesday, the equity benchmark indices Sensex and Nifty faced a downward trend, closing lower as investors reduced their exposure to key index majors such as Reliance Industries, L&T, and Bharti Airtel. This move was influenced by global tariff-related concerns that impacted market sentiment. Additionally, the weak start to the earnings season and the continued flight of foreign capital from Indian markets added to the sluggish market environment, as noted by traders.
Despite a day’s breather, the 30-share BSE Sensex declined by 250.48 points, or 0.30%, settling at 83,627.69. Throughout the trading day, it experienced a drop of 615.38 points, or 0.73%, reaching 83,262.79. Similarly, the 50-share NSE Nifty saw a decrease of 57.95 points, or 0.22%, closing at 25,732.30.
The trading session commenced on a negative note following disappointing results from IT major TCS and continued to trend lower for most of the day. However, a late-hour rebound helped in trimming some of the losses incurred.
Global Factors Impact Market Sentiment
Renewed concerns regarding potential US tariffs on countries trading with Iran played a significant role in the downturn experienced by domestic equities. This overshadowed the initial optimism stemming from positive statements made by the newly appointed US ambassador regarding the trade deal. Investor sentiment remained cautious due to various factors, including the weakness of the rupee, rising crude prices, higher US bond yields, and ongoing FII outflows.
