Dalal Street bled on Tuesday after rebounding during early trade. The BSE Sensex settled the session near 82,000, crashing close to 300 points, and the NSE Nifty50 closed trading under 25,150, about 100 points down.
The top gainers in the market included stocks like Tech Mahindra, ICICI Bank, Hindustan Unilever and PowerGrid Corporation and among the laggards were stocks such as Bajaj Finserv, Reliance, HDFC Banks and Kotak Bank.
As volatility remained high the broader market indices painted red, with the Nifty Microcap 250 being the worst-hit, declining by 1.13 per cent. Sectorally, all indices tanked again, with the Nifty PSU Bank index falling the most by 1.52 per cent.
Notably, the Indian markets opened higher on Tuesday, recovering from the previous session’s losses, as investors drew confidence from gains in IT stocks, positive cues from the US markets, and optimism surrounding India-US trade negotiations. The rebound followed a weak Monday session when the Sensex declined 173.77 points to close at 82,327.05, and the Nifty50 ended at 25,227.35.
US-China Trade Tensions, Inflation
Government data released on Monday showed retail inflation slowing to an over eight-year low of 1.54 per cent in September. The decline was attributed mainly to subdued prices of vegetables, fruits, and pulses, bringing inflation below the Reserve Bank of India’s (RBI) comfort range.
Despite the upbeat start, investor sentiment remained cautious amid escalating trade tensions between the US and China. The dispute has now extended to maritime trade, with Beijing threatening to impose special charges on vessels owned, operated, built, or flagged by the US, while exempting Chinese-built ships from the levy.
This move underscores the high seas as a critical front in the ongoing trade dispute between the world’s two largest economies, as per a Reuters report. As per state broadcaster CCTV, there will also be additional charges for empty ships entering Chinese shipyards for repair. The fees will be applicable at the first port of entry per voyage or for the first five voyages within a year, on the basis of an annual billing cycle starting April 17.
Previously, Trump administration was also planning to impose similar fees on China-linked vessels to reduce Beijing’s dominance in global maritime logistics and strengthen US shipbuilding. Trump had also threatened 100 per cent tariffs on Chinese goods and new export controls on critical software by November 1, after China imposed restrictions on critical mineral exports.
