Stock Market Today: Sensex and Nifty Decline Amid Global Market Weakness

Market Overview

Benchmark indices Sensex and Nifty experienced a downturn on Monday after initially registering gains. Profit-booking towards the end of the session and negative global indicators contributed to the decline.

The Sensex dropped 709.32 points from its intraday peak, reaching a low of 74,031.93. By market close, it had settled at 74,115.17, marking a decline of 217.41 points or 0.29 per cent. Meanwhile, the Nifty slipped below 22,500, hitting an intraday low of 22,429.05 before closing at 22,460.30, down 92.2 points or 0.41 per cent.

Key Market Influences

Decline in US Stock Futures

US stock futures recorded significant losses, setting a volatile tone for the trading week. Dow Jones futures fell by over 400 points, while S&P 500 futures dropped by more than 60. Additionally, Nasdaq futures saw a decline exceeding 250 points. Market sentiment reflected caution following remarks from US President Donald Trump about the economy undergoing a "period of transition."

Trade Policy Concerns

Uncertainty surrounding US trade policy exerted additional pressure on domestic equities. The US Commerce Secretary announced that a 25 per cent tariff on steel and aluminium imports would be implemented starting Wednesday. Concerns persist regarding potential reciprocal tariffs on Indian exports, which may impact multiple sectors.

Weak Asian Markets

Asian markets reflected a downward trend, further contributing to negative sentiment. The Hang Seng index in Hong Kong led the declines, dropping 1.8 per cent to 23,800.44, meanwhile, the Shanghai Composite dipped by 0.2 percent to 3,366.16.

Additionally, a decline in China's consumer prices for February, the first in 13 months, signalled weakening demand in the global economy's second-largest market.

Sectoral Indices Performance

Among the sectoral indices on the NSE, most sectors ended in the red, with only the FMCG sector managing to stay in positive territory. The Nifty FMCG index edged up by 0.22%, standing out as the only gainer. Meanwhile, the Nifty PSU Bank index suffered the biggest loss, falling 1.86%, followed by Nifty Auto, which declined 1.22%.

Other sectors, including banks, metals, IT, media, and pharmaceuticals, also closed in negative territory, reflecting overall weak market sentiment.

Summary

Indian equity indices closed lower as weak global signals weighed on investor sentiment. The primary reasons for the downturn included a steep fall in US stock futures, concerns over trade policies, and declining Asian markets. Additionally, sectoral indices reflected mixed performance, with FMCG emerging as the lone gainer while banking and auto stocks bore the brunt of the selling pressure. Investors remained cautious amid global economic uncertainties, leading to a broad-based decline in the market.