Market Reaction to US Tariff Plans

Investors on Dalal Street displayed a notable resilience in the face of the US's new tariff announcements. Despite an initial sharp decline, the Sensex managed to recover significantly, closing only 0.4% lower. Similarly, the Nifty on the NSE ended the day down by the same margin at 23,250 points.

Global Market Comparison

In contrast to the relatively mild reaction in India, global markets experienced more pronounced downturns. Japan's Nikkei fell by 2.8%, Hong Kong's Hang Seng by 1.5%, and the UK's FTSE by 1.6%. Early trading in the US also saw significant drops across major indices.

Sectoral Performance and Investor Sentiment

While the IT sector saw a sharp correction, the pharma index rallied, highlighting the mixed sentiment among investors. Midcap and smallcap stocks, however, attracted buying interest, contributing to a Rs 35,000 crore increase in market capitalisation.

Expert Analysis

Sundar Kewat of Ashika Institutional Equity pointed to global sentiment and Trump's tariff announcements as key factors behind the day's market movements. The announcement of a 26% reciprocal tariff on Indian imports and additional tariffs on auto components were particularly impactful.

Commodity Market Trends

Globally, gold and silver prices saw significant declines, reflecting the broader market uncertainty. Domestic prices for these commodities also softened, with gold and silver closing lower in Mumbai.