On the last day of the month’s futures and options expiry, the Nifty 50 managed to bounce back despite facing initial challenges from weak global cues. The index started its trading day at 23,434, mirroring the downturn in US markets after President Donald Trump announced a 25% tariff on imported vehicles and essential auto components. This surprising policy shift caused a significant drop in US stocks, which, in turn, cast a shadow over Indian markets, pushing the Nifty down to an intraday low of 23,412. However, the index staged a remarkable recovery, closing at 23,591.95, marking a gain of 105.10 points, or 0.45%.
Sensex Resilient Amidst Market Fluctuations
The Sensex also faced a rocky start, dipping by 200 points before reversing its fortunes. It ultimately finished the day up by 317.93 points, or 0.41%, closing at 77,606.43. The broader indices, namely BSE Midcap and BSE Smallcap, also contributed positively, rising by 0.46% and 0.90%, respectively, breaking a two-day streak of losses.
Positive Sentiment in Domestic Markets
“Throughout the day, domestic indices showed resilience, buoyed by consistent foreign investments and interest in blue-chip stocks,” expressed Vinod Nair, head of research at Geojit Investments. “However, the tariff on auto imports has negatively impacted auto stocks and heightened concerns in the pharmaceutical sector.”
Despite the overall market breadth leaning negative, with 2,349 stocks declining compared to 1,699 that gained, several sectors managed to record upward movement. Notable performers included:
- Public sector banks
- Information Technology (IT)
- Oil & Gas
- Realty
- Media
Investors’ Wealth Surges
Interestingly, investors saw a significant boost in wealth, with a rise of Rs 3.10 lakh crore, bringing the total to Rs 414.72 lakh crore.
Tata Motors Faces Setback
In contrast to the positive movement in most sectors, Tata Motors was the biggest laggard on the Sensex, experiencing a sharp decline of 5.56% as it faced intense selling pressure following the tariff announcement. Other notable losers from the Sensex included Sun Pharma, Kotak Mahindra Bank, Bharti Airtel, and HCL Tech.
Conversely, stocks like Bajaj Finserv, IndusInd Bank, NTPC, L&T, and UltraTech Cement showcased strong performance, with gains reaching up to 3.23%.
Conclusion
As the markets adjust to the implications of new tariffs and global cues, investors remain cautiously optimistic. The resilience of the Nifty and Sensex amidst challenges highlights the potential for recovery in the coming days.
