Sensex, Nifty End Lower As US Tariff Concerns, Global Tensions Weigh On Markets

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Indian benchmark equity indices closed in the red on Wednesday as investors remained cautious amid fresh tariff concerns from the United States, ongoing tensions in West Asia, and reports of renewed attacks in Ukraine.

The BSE Sensex fell 303.67 points, or 0.41 per cent, to settle at 74,346.17, while the NSE Nifty 50 declined 77.95 points, or 0.33 per cent, to close at 23,405.60.

Despite a weak start, domestic markets recovered significantly from intraday lows, aided by strong buying in banking stocks. However, gains in financial counters were insufficient to offset losses in information technology and FMCG shares.

Among sectoral indices, Nifty IT emerged as the biggest loser, plunging more than 5 per cent due to profit booking and concerns over the global economic outlook. Nifty FMCG also declined over 1 per cent, while Nifty Media slipped 0.59 per cent.

On the other hand, banking stocks outperformed. Nifty PSU Bank surged 1.70 per cent, while Nifty Private Bank gained 0.70 per cent. Nifty Pharma also ended in positive territory, rising 0.33 per cent.

Market participants remained cautious ahead of the Reserve Bank of India’s monetary policy decision and the release of key GDP data, both of which are expected to provide insights into the country’s growth trajectory and inflation outlook.

In the currency market, the Indian rupee traded around ₹95.70 against the US dollar.

Meanwhile, crude oil prices remained elevated amid geopolitical concerns. Brent crude traded above USD 98 per barrel, gaining more than 3 per cent during the session, raising concerns about inflationary pressures and import costs.

Precious metals, however, witnessed profit booking. Gold prices slipped 1 per cent to ₹1,53,996 per 10 grams for 24-carat gold, while silver prices declined to ₹2,64,157 per kilogram.

Across Asia, markets ended on a mixed note. Japan’s Nikkei 225 advanced more than 2 per cent, while Singapore’s Straits Times Index and Taiwan’s Weighted Index also posted gains. However, Hong Kong’s Hang Seng Index fell 1.61 per cent, reflecting caution among regional investors. South Korean markets remained closed.

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