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Sensex, Nifty magnify opening losses in early deals amid Trump tariff worries
Feb-10-2025

Indian equity benchmarks made negative start on Monday following the broadly negative cues from Wall Street on Friday, as well as weakness in Asian counterparts amid concerns over China-U.S. trade tensions, and potential new tariffs on imports from Canada, Mexico and the European Union. U.S. President Donald Trump said he will announce 25 percent tariffs on all imports of steel and aluminum. Trump also said he will announce reciprocal tariffs on many countries, with the U.S. imposing tariffs on imports equal to the rates imposed on American exports. Sensex and Nifty have extended their opening losses and are trading lower with cut of over half a percent each in early deals. All the sector indices are trading in red, except FMCG. Metal stocks leading losers. Traders were concerned amid the exodus of FPIs from the Indian equity markets continued unabated, as they withdrew over Rs 7,300 crore (about 840 million) in the first week of this month due to global trade tensions.

On the sectoral front, life insurance company’s stocks are in focus as the new business premiums (NBP) of life insurance companies in January 2025 dropped by 8.15 per cent year-on-year (Y-o-Y) to Rs 30,825.17 crore. In stock specific development, VA Tech Wabag climbed as it reported Y-o-Y increase in net profit in Q3FY25.

The BSE Sensex is currently trading at 77420.52, down by 439.67 points or 0.56% after trading in a range of 77396.82 and 77849.58. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.12%, while Small cap index was down by 1.38%.

The sole gaining sectoral index on the BSE was FMCG up by 0.19%, while Metal down by 2.70%, Healthcare down by 1.88%, Realty down by 1.84%, Basic Materials down by 1.66%, Oil & Gas down by 1.65% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 0.96%, Bharti Airtel up by 0.79%, Nestle up by 0.43%, SBI up by 0.39% and ITC up by 0.37%. On the flip side, Tata Steel down by 3.25%, Power Grid down by 2.55%, NTPC down by 1.77%, Zomato down by 1.43% and Sun Pharma down by 1.40% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said that income tax relief provided for in the Union Budget coupled with RBI repo rate cut put together will boost recovery in consumption in the economy. In Union Budget for 2025-26 tabled on February 1, the finance minister had announced that no income tax will be payable on income up to Rs 12 lakh, providing significant relief to taxpayers, especially the middle class. Earlier, this limit was Rs 7 lakh. An estimated one crore middle-income Indian taxpayers will be out of tax net.

She said ‘Since after the budget, the few inputs that I’ve had from some business leaders and some senior journalists who have been interacting with business is that (though these are anecdotal)… Most of it seem to be on the same page that the orders for fast moving consumer goods for the period April to June are already getting booked, and industry is clearly seeing the signs of a possible recovery of consumption.’

As a result of fresh demands, she said that many businesses were looking at reviewing the capacity utilization. Further, she said ‘I see it a positive sign, and with yesterday’s decision of the RBI (the reduction of repo rate), I’m sure together, things can move in alignment.’

The CNX Nifty is currently trading at 23429.10, down by 130.85 points or 0.56% after trading in a range of 23403.35 and 23568.60. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Britannia Industries up by 2.25%, Bharti Airtel up by 0.92%, Hindustan Unilever up by 0.85%, Hero MotoCorp up by 0.61% and Tata Consumer Products up by 0.57%. On the flip side, Tata Steel down by 3.28%, JSW Steel down by 2.83%, Power Grid down by 2.57%, Cipla down by 2.54% and Hindalco down by 2.39% were the top losers.

Asian markets are trading mostly in green; Hang Seng surged 301.88 points or 1.43% to 21,435.42, Nikkei 225 rose 45.23 points or 0.12% to 38,832.25, Straits Times advanced 25.82 points or 0.67% to 3,887.24, Shanghai Composite strengthened 10.08 points or 0.3% to 3,313.75 and KOSPI increased 2.26 points or 0.09% to 2,524.18. On the other hand, Taiwan Weighted lost 265.18 points or 1.13% to 23,213.09 and Jakarta Composite was down by 106.95 points or 1.59% to 6,635.63.
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