Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, tanked in trade on Monday. While BSE Sensex fell over 700 points, Nifty50 went below 23,350 intraday. BSE Sensex ended the day at 77,311.80, down 548 points or 0.70%. Nifty50 closed at 23,377.10, down 183 points or 0.78%.
Key equity indices traded lower as global markets reacted negatively to US President Donald Trump's latest tariff warnings.
Why BSE Sensex, Nifty50 tanked today:
1) Trump's tariff announcementOn Friday, Trump revealed plans to implement reciprocal tariffs by Monday or Tuesday. This move would match import tariffs with rates that trading partners charge on US exports, creating market uncertainty.
2) Reduced Rate Cut PossibilitiesTrump's warnings about steel and aluminium tariffs could trigger inflation, potentially limiting rate reduction options. Higher US rates typically reduce foreign investment appeal in emerging markets like India.
3) Ongoing FII WithdrawalsForeign portfolio investors have withdrawn Indian shares worth $9.9 billion net in 2025, according to NSDL data.
"With the dollar index above 108 and the 10-year US bond yield above 4.4%, FIIs will continue to sell the rally, restricting any potential upside," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
4) Currency WeaknessThe Indian rupee reached its lowest level as potential US trade tariffs affected regional currencies. It fell to 87.95 per US dollar during early trading, surpassing its previous low of 87.5825 from last week. The currency later traded at 87.9325, down 0.6%.
Following its steepest weekly fall since December 2022, the rupee faces continued pressure from trade tariff concerns ahead of important US inflation data.
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