Benchmark indices opened lower on Tuesday following the announcement by US President Donald Trump of a 25 percent tariff on all steel and aluminium imports into the United States.
The Sensex declined by 172.29 points, or 0.22 percent, to 77,138.51, while the Nifty dropped 56 points, or 0.24 percent, to 23,324.80 at the opening bell.
The Indian Steel Association (ISA) has expressed deep concern over the US decision to impose tariffs on steel imports, urging the Indian government to push for the removal of long-standing anti-dumping and countervailing duties and to secure exemptions from these restrictive measures.
The latest tariff is expected to slash steel exports to the US by 85 per cent. These tariffs could lead to a massive steel surplus that will likely flood the Indian market, ISA said.
Sectoral indices on the National Stock Exchange reflected weak sentiment, with most sectors trading in the red. Nifty Bank, Nifty Auto, and Nifty Media registered declines, with Nifty Media falling by 1.72 percent. Nifty Realty saw a sharper decline of 2 percent, while Pharma and PSU Banks also remained under pressure.
Market experts attributed the decline to persistent selling by FIIs. However, they believe this presents an opportunity for long-term investors to accumulate large-cap stocks.
“When FIIs turn buyers in India, which is inevitable, they will be buying the large-caps that they are currently selling. For patient investors, this is a good opportunity,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
He further added “The relentless selling by FIIs in largecaps has made their valuations fair while the valuations of mid and smallcaps continue to be excessive. FIIs will certainly turn buyers in India but that will happen only when the dollar index turns weak”.
Investors are expected to closely monitor global market trends, crude oil prices, and institutional flows for further direction. On the technical front, Nifty has formed a bearish candlestick on the daily chart, signaling negative sentiment. The index faces resistance at 23,460, and a breakout above this level could lead to further gains towards 23,550 and 23,700.
Institutional flows continue to play a crucial role in market sentiment. On February 10, FIIs sold equities worth Rs 2,463 crore, while domestic institutional investors (DIIs) purchased equities worth Rs 1,515 crore. Despite ongoing selling pressure, analysts remain optimistic about a market rebound once FIIs resume buying, which could drive a rally in large-cap stocks.
-ANI
