The S&P BSE Sensex tanked 361.25 points to 73,753.92, while the NSE Nifty50 lost 113.65 points to 22,346.65 as of 9:16 AM.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that President Trump’s flip-flop tariff policy and the high uncertainty that it has triggered has started impacting US stock markets: S&P 500 & Nasdaq declining by 2.6% and 4% respectively yesterday is the market’s response to Trump’s tariffs and the possibility of US recession by the year end. We will have to wait and watch how the situation develops.
“A significant consequence of the ongoing market correction is that India is now outperforming the US. During the last one month, while S&P 500 is down 7.5% Nifty is down only 2.7%. More importantly, the dollar index is down from 109.3 when Trump assumed presidency to 103.71 now. If this trend continues it will be good for emerging markets like India. Capital outflows from India will decline,” he added.
ICICI Bank emerged as the top gainer in early trade, rising 1.05%, followed by Bajaj Auto which added 0.26%. Maruti Suzuki India gained a modest 0.10%, while Sun Pharmaceutical Industries inched up 0.02%, and ITC managed a marginal increase of 0.01%.
The losing camp was dominated by IndusInd Bank, which plummeted 10.00% in a dramatic sell-off.
It majors also faced pressure, with Infosys dropping 2.43% and Wipro falling 2.40%. Retail giant Trent and Tata Steel both declined 1.49% each.
The Nifty Midcap100 index fell 1.05%, reflecting selling pressure in mid-sized companies. The decline was even more pronounced in smaller stocks, with the Nifty Smallcap100 index dropping 1.80%, indicating heightened risk aversion among investors.
In contrast, the India VIX, often referred to as the fear gauge, jumped 2.44%, suggesting increased market uncertainty and nervousness among traders.
Vijay Kumar said that the ideal investment strategy now is not to panic in the market correction and continue with the policy of slow accumulation of high-quality stocks mainly in large caps and very selectively in beaten-down mid and smallcaps.