The NSE Nifty 50 dropped 0.17% to 23,553.8, while the BSE Sensex was down 0.20% at 77,451 as of 10:06 a.m. IST.
Market Sentiment Dampened by U.S. Tariff Uncertainty
Global markets, including Asian indices, have been jittery since U.S. President Donald Trump announced a 25% tariff on automotive imports, scheduled to take effect next week.
"The market will remain subdued in the next couple of sessions due to uncertainties surrounding the U.S. tariffs, which will influence the immediate trajectory and keep investors cautious," said Sameet Chavan, Head of Research at Angel One.
Sector-Wise Performance
- Auto stocks: Declined 0.8%, extending their two-day loss to 2%, amid concerns over export duties.
- Pharmaceutical stocks: Fell 0.9%, as the U.S. accounts for one-third of India's pharma exports.
- IT stocks: Dropped 1.3%, with Tata Consultancy Services (TCS) and Infosys losing 1.1% and 1.7%, respectively. The sector remains under pressure ahead of a key U.S. inflation report due after Indian market hours.
- Smallcap and midcap stocks: Outperformed, gaining 0.6% and 0.4%, respectively, due to their domestic focus.
Exchange Operator Bucks the Trend
In a surprise move, shares of a major Indian exchange operator surged 12%, after India's market regulator adjusted the derivatives expiry schedule. Analysts suggest this decision could ease concerns about the bourse’s market share loss.
Looking Ahead
With the U.S. administration set to implement retaliatory tariffs from April 2, but with uncertainty over their full extent, market sentiment is likely to remain volatile. Traders will closely watch global cues and domestic policy responses in the coming days.