Final Trade: Sensex drops for 4th straight day, falls 548 pts; Nifty ends at 23,382

The  stock market extended its losing streak for the fourth consecutive session on Monday, with benchmark indices tumbling on concerns over renewed U.S. tariffs and foreign fund outflows.

The BSE Sensex fell 548.39 points (0.70 per cent) to settle at 77,311.80, while the NSE Nifty 50 dropped 178.35 points (0.76 per cent) to close at 23,381.60.

Key reasons for the market slump

• Trump’s tariff threat fuels global uncertainty

  Investor sentiment took a hit after U.S. President Donald Trump announced a 25 per cent tariff on steel and aluminium imports, raising fears of a global trade war. This particularly weighed on metal stocks and broader market confidence.

• Rupee hits record low

  The Indian rupee depreciated to 87.95 against the U.S. dollar, hitting an all-time low as capital outflows intensified. The Reserve Bank of India (RBI) is expected to intervene to prevent further depreciation.

• Foreign investors offload equities

  Foreign institutional investors (FIIs) sold Rs 470.39 crore worth of equities, as rising U.S. bond yields and a strong dollar index (108.28) prompted capital flight from emerging markets like India.

Sectoral performance

• Nifty FMCG index hit an 8-month low, reflecting weak demand and a cautious investor outlook.
• Metal stocks took a hit on tariff concerns, with Tata Steel and JSW Steel among the top losers.
• IT stocks remained resilient amid a weaker rupee, with Infosys and TCS posting modest gains.

Expert take on market outlook

Vinod Nair, Head of Research at Geojit Financial Services, noted:
"The U.S. tariff threats and rising domestic bond yields are adding pressure on the markets. Investors are shifting towards safer assets like gold. Earnings downgrades and weak demand outlook are keeping equities under check."

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, added:
"With the dollar index above 108 and the 10-year U.S. bond yield above 4.4 per cent, FIIs will continue selling rallies. Valuations in India remain stretched, and the market lacks strong fundamental triggers."

Looking ahead

Market experts suggest a range-bound movement in the near term, with key triggers being GDP growth updates, corporate earnings, and any further developments on U.S. trade policies. Investors are advised to stick to high-quality large-cap stocks and avoid excessive risk-taking amid global uncertainties.

With inflation data and key economic indicators due later this week, all eyes remain on the RBI’s stance on liquidity and potential intervention in the forex market.