Indian equities experienced significant declines on Monday, coinciding with the rupee reaching an unprecedented low of 87.95 against the U.S. dollar. This movement was primarily driven by investor concerns surrounding recent developments in international tariffs.
U.S. President Donald Trump recently introduced a 25 percent tariff on all steel and aluminum imports. This decision has sparked fears of a looming global trade war and its possible repercussions on the international economic landscape. In response, China has initiated retaliatory tariffs on U.S. goods as of today. President Trump additionally announced that he plans to unveil reciprocal tariffs on either Tuesday or Wednesday, designed to match the tariffs imposed by these countries on American exports. "When they’re charging us 130 percent and we’re charging them nothing, that’s going to change," he asserted during a press briefing.
The S&P BSE Sensex, a leading benchmark index, concluded the day's trading session with a reduction of 548.39 points, or 0.70 percent, settling at 77,311.80, having previously dropped to a session low of 77,106. Meanwhile, the broader NSE Nifty index witnessed an intraday dip to 23,316.30 before closing lower by 178.35 points, or 0.76 percent, at 23,381.60.
Stocks such as ONGC, Titan Company, Tata Steel, Power Grid Corp, and Trent registered losses ranging from 2 to 4 percent. In contrast, Kotak Mahindra Bank saw a rise of 1.7 percent, with Britannia Industries and Bharati Airtel each making gains of approximately 1 percent.
Mahindra & Mahindra declined by 2.1 percent, and Ola Electric Mobility fell by 3.5 percent, even after Goldman Sachs increased their target prices following the release of their Q3 financial results.
