Indian stocks experienced a significant decline on Tuesday, with a widespread sell-off precipitated by U.S. President Donald Trump's recent introduction of trade tariffs on neighboring countries shortly after assuming office.
Market sentiment was further dampened by concerns regarding weak corporate earnings and sustained withdrawal of foreign investments.
The U.S. dollar witnessed a rebound as global markets grappled with mixed signals emanating from President Trump. He postponed the implementation of tariffs on Chinese goods but issued a threat to impose tariffs on two of the U.S.'s immediate neighbors: Canada and Mexico.
Moreover, Trump directed his administration to tackle unfair global trade practices. The benchmark S&P/BSE Sensex plummeted by 1,235.08 points, equating to a 1.60 percent drop, settling at 75,838.36 amidst increased market volatility.
Similarly, the broader NSE Nifty index concluded at 23,024.65, reflecting a decrease of 320.10 points or 1.37 percent from its previous close.
Notably, second-tier stocks mirrored this trend, with the BSE mid-cap and small-cap indices closing down by 1.9 percent and 2 percent, respectively.
The market breadth on the BSE was predominantly negative, as 2,774 stocks fell, 1,202 rose, and 112 remained unchanged.
Among key decliners, Adani Enterprises, ICICI Bank, Adani Ports, NTPC, and Trent saw their stock prices plunge between 3 percent and 6 percent.
Dixon Technologies declined by nearly 14 percent, Zomato decreased over 10 percent, and Newgen Software fell by 16.6 percent following their quarterly earnings announcements.
One97 Communications lost 5.6 percent after its Q3 contribution margin failed to meet analysts' expectations, primarily due to higher default loan guarantee (DLG) costs.
Meanwhile, HDFC Bank concluded the trading session relatively unchanged, with its earnings report expected on Wednesday.
