Trump’s new tariff plans rattle markets, Sensex plunges 548 points
Equity markets tumbled on Monday as President Donald Trump’s announcement of sweeping tariffs on steel and aluminum imports sparked fresh concerns over global trade, with the BSE Sensex plummeting 548.39 points to close at 77,311.80 and the Nifty falling 178.35 points to 23,381.60.
“The US tariff threats continued to impact the market sentiment. Domestic yield is inching higher as investors stay cautious on riskier assets and navigate their investments to safe haven assets like gold,” said Vinod Nair, Head of Research at Geojit Financial Services.
The market breadth was decisively negative, with 3,032 stocks declining against 1,070 advances on the BSE. The selloff was particularly severe in the midcap and smallcap segments, with the Nifty Midcap Select index dropping 1.84 per cent to 11,790.05.
Adding to market woes, the Indian rupee hit a historic low of 87.95 against the dollar before partially recovering. “The continued outflow of funds post-budget and RBI policy weighed on sentiment, as neither event provided any substantial reforms or structural shifts beyond higher tax slabs for retail and a minor rate cut from the RBI,” noted Jateen Trivedi, VP Research Analyst at LKP Securities.
Among sectoral indices, Nifty Realty faced the steepest decline. Trent emerged as the biggest loser among Nifty stocks, plunging 4.48 per cent to ₹5,210, followed by PowerGrid (-3.27 per cent), Tata Steel (-3.18 per cent), Titan (-2.91 per cent), and ONGC (-2.43 per cent). On the gaining side, Kotak Mahindra Bank led with a 1.74 per cent rise, followed by Bharti Airtel (1.06 per cent), Britannia (0.91 per cent), Tata Consumer Products (0.57 per cent), and HCL Tech (0.48 per cent).
“The benchmark index began the trading week on a negative note, with selling pressure from the previous week continuing to influence market sentiment,” said Ameya Ranadive, Sr Technical Analyst at StoxBox. Trading volumes remained subdued, with NSE cash market activity dropping 17 per cent below average to touch 2025’s lowest levels.
Technical analysts maintained a cautious outlook. “The decline continues in the headline index as it has been falling after forming a lower top on the daily chart. Sentiment has weakened further after Nifty dropped below the 21EMA,” said Rupak De of LKP Securities, suggesting potential weakness toward the 23,000 level.
The uncertainty in global markets also drove gold prices higher, with the precious metal surging above ₹85,800 in MCX. “With no specific clarity on which countries are included or excluded [in the tariffs], uncertainty in global trade has driven significant bullion buying,” Trivedi added.
“As valuations remain expensive, mid & small cap stocks continue to take hammering,” observed Prashanth Tapse of Mehta Equities, highlighting the broader market weakness as investors reassess risk amid growing global trade tensions.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted the technical weakness in the market: “After a muted opening, the market slipped below 23,500/77600, and following this breakdown, selling pressure intensified. We believe that the current market texture is weak, but a fresh sell-off is only possible if the 20-day SMA or 23,300/77000 is dismissed.”
The bearish sentiment was further emphasized by Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, who pointed out that “a long bear candle was formed on the daily chart, that has started to move below the crucial cluster supports of around 23400 levels. Having moved below the crucial supports of 23400, one may expect the market to slide down to 23200 and lower in the short term.”
Devarsh Vakil, Head of Prime Research at HDFC Securities, highlighted the severity of the market decline: “The bloodbath in mid and small-cap segments proved particularly severe. The Nifty Midcap index bore the brunt of the selling spree, nosediving 2.1 per cent to 52,471, significantly underperforming its large-cap counterparts.”
Ajit Mishra, SVP Research at Religare Broking, warned about crucial support levels: “Looking ahead, 23,200 emerges as a crucial support level, and a decisive break below it could strengthen the bearish sentiment, potentially dragging the index toward its January low of 22,800.”
Osho Krishnan, Sr. Analyst at Angel One, emphasized the technical aspects: “Nifty concluded below 20 DEMA after seven sessions, followed by a negative crossover in the RSI. The zone of 23300-23200 is likely to serve as crucial support, while a break below the same could push prices back toward the 23000 psychological zone.”
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates, noted the volatility spike: “The volatility index, India VIX, rose 5.55 per cent to 14.45, indicating an increase in market volatility. However, the index found support near the 21-Days simple moving average (DSMA), which is placed around 23,290.”
