Indian equities took a significant hit on Monday, weighed down by apprehensions about frail corporate earnings, ongoing uncertainties surrounding U.S. trade and tariff policies, as well as sustained outflows from foreign funds.
Concerns regarding tariffs resurfaced as tensions between the U.S. and Colombia de-escalated, averting a potential trade war. The Trump administration announced it was halting the imposition of punitive tariffs against Colombia after the country agreed to permit entry of U.S. military flights transporting deported migrants. Previously, President Trump had threatened tariffs and sanctions to penalize Colombia for its initial refusal to accept these flights, as part of his broader immigration enforcement strategy.
Investors also responded to feeble economic data from China and were gearing up for a series of central bank policy meetings scheduled later in the week, along with the upcoming Union Budget on February 1, for direction.
The benchmark S&P/BSE Sensex saw a decline of 824.29 points, or 1.08 percent, closing at 75,366.17, marking its second consecutive session of losses. Similarly, the broader NSE Nifty index concluded the day at 22,829.15, falling 263.05 points, or 1.14 percent, from its previous close.
The BSE mid-cap and small-cap indexes suffered steeper declines, plunging 2.8 percent and 3.4 percent, respectively. The market sentiment was predominantly negative, with 3,518 shares declining on the BSE, as against 598 shares that advanced, and 118 shares remained unchanged.
Leading the losses were IT stocks, as Wipro, Tech Mahindra, and HCL Technologies fell by 4-5 percent. Hindalco and Shriram Finance also dipped over 3 percent. Cement manufacturer ACC experienced a 3 percent drop, while the state-owned oil marketing company Indian Oil saw a significant 5.2 percent plunge after releasing their quarterly results.
Adani Total Gas declined by 3.4 percent following the announcement of a 19 percent decrease in Q3 profit. CreditAccess Grameen slipped 2.5 percent after lowering its full-year guidance. Laurus Labs plummeted 11 percent amid concerns about potential impacts on its Anti-Retroviral (ARV) business, following President Trump's decision to exit the WHO and halt emergency funding programs.
