Indian stock markets witnessed a sharp decline during Monday’s opening. US President Trump imposed trade tariffs on Columbia, dampening investor sentiment.
The Nifty 50 index opened at 22,940.15, falling by 152.05 points, or 0.66 percent, while the BSE Sensex dropped 490.03 points, or 0.64 percent, to open at 75,700.43. The market turmoil follows US President Donald Trump’s announcement of a 25 percent tariff on Colombian imports. The move came after Colombia refused to allow US military planes carrying deported Colombian immigrants to land in the country.
In response, Colombia has decided to use its presidential plane to transport the immigrants from Honduras. However, the damage to market sentiment appears to have been done.
Experts noted that the “weaponisation” of tariffs and visa access in the ongoing US-Colombia standoff has sent shockwaves across global markets. While US-Colombia trade volumes are relatively small, the implications for other US trade partners, including Mexico, Canada, Europe, and China, have been unsettling.
Ajay Bagga, a Banking and Market Expert, told ANI, “Indian futures are weak, pointing to a negative open. However, any resolution to the Colombian tariff issue will be sentimentally positive later in the day. Markets will remain on edge as the weekend deadline of February 1st approaches for Trump tariffs on Mexico and Canada. The hopes of any pre-Union Budget 2025 rally in India have largely been negated by the global overhang on Emerging Markets due to the MAGAnomics consequences”.
Sectoral indices in India reflected the grim mood, with Nifty Media, Metal, and Consumer Durables taking the hardest hit. Nifty IT also declined by 0.92 per cent. Of the Nifty 50 stocks, only four traded in the green, while the rest were red.
Meanwhile, major companies like Coal India, Indian Oil Corporation, Tata Steel, Bajaj Housing Finance, Canara Bank, Adani Wilmar, and Petronet LNG are set to announce their Q3 earnings later today, keeping investors on edge.
“The 23,000 level on the Nifty acts as a critical support. A break below this level could initiate a move towards 22,670, corresponding to the 38.2 per cent Fibonacci retracement of the rally between 16,828 and 26,277.
Currently, the Nifty is trading within a specific price range around support. A breakdown below support could identify more downward momentum, or the Nifty can bounce back from support.
Furthermore, the upcoming budget is an important event that could push the market up or down. The budget could be a deciding factor in the direction of Nifty 50,” said Sunil Gurjar, SEBI Registered Research Analyst and founder of Alphamojo Financial Services.
