Indian equity indices opened lower on Thursday following a sharp sell-off in global markets after U.S. President Donald Trump’s announcement of reciprocal tariffs.
At around 9:20 AM, the Sensex was down 470 points or 0.61 percent at 76,197, while the Nifty was down 105 points or 0.45 percent, at 23,227.
In the early trading hours, midcaps and smallcaps were trading with minor gains compared to largecaps. The Nifty Midcap 100 index was up 125 points or 0.24 percent at 52,183, and the Nifty Smallcap 100 index was up 121 points or 0.75 percent at 16,283.
On the sectoral front, auto, IT, PSU banks, FMCG, metals, and media were among the top laggards, while pharma, realty, and energy were the major gainers.
In the Sensex pack, Infosys, HCL Tech, TCS, Tech Mahindra, Tata Motors, M&M, Bharti Airtel, Reliance, HDFC Bank, Maruti Suzuki, and Kotak Mahindra Bank were the major losers. On the other hand, Sun Pharma, Power Grid, NTPC, Bajaj Finance, Bajaj Finserv, Titan, and UltraTech Cement were the top gainers.
Vikram Kasat, Head of Advisory at PL Capital-Prabhudas Lilladher, stated, “Large tariff shocks threaten the U.S. and global economy. If these policies are sustained, they could likely push the U.S. and global economy into recession this year.”
“In general terms, Canada and Mexico have been impacted less severely, while Asian countries, particularly China and Vietnam, have been hit the hardest. The European Union and Japan fall somewhere in between. The hope is that no one retaliates, because if retaliation occurs, there will be an escalation. If no retaliation happens, this might be the high-water mark,” he added.
Most Asian markets witnessed heavy selling due to U.S. tariffs, with Tokyo, Shanghai, Hong Kong, Bangkok, and Seoul trading in the red. However, U.S. markets closed in the green during Wednesday’s trading session.
On the institutional front, foreign institutional investors (FIIs) extended their selling streak for the third consecutive session on April 2, offloading equities worth Rs 1,538 crore. In contrast, domestic institutional investors (DIIs) remained net buyers for the fourth consecutive day, purchasing equities worth Rs 2,800 crore.
(Inputs from IANS)
