Mumbai (Maharashtra) [India], April 1 (ANI): Indian stock markets are experiencing a volatile session, with both Sensex and Nifty falling by over a percent each. Experts attribute the decline to several factors, including the looming US tariffs, slower growth forecasts for Indian IT companies, and concerns over crude oil prices amid global geopolitical tensions.
At the time of writing, the Sensex stood at 76,090.2, down by 1,324.71 points or 1.71%, while the Nifty dropped to 23,190.55, declining by 328.80 points or 1.40%. Market experts believe that the announcement of tariffs by the US, set for April 2, is significantly impacting investor sentiment.
Ajay Bagga, a market and banking expert, stated, “The uncertainty is hitting Indian markets today as the ‘T-Day’ looms, when the US announces tariffs on various countries and sectors.” He highlighted the pressure on Indian IT companies, which are experiencing selling due to concerns over slower growth in the key US market. This could affect management guidance, expected to be released in mid-April.
Another factor influencing market movements is the ongoing geopolitical developments in Iran, Russia, and Venezuela, which have the potential to affect crude oil prices negatively. As a major oil importer, India is particularly vulnerable to these fluctuations. Bagga emphasized that the combination of uncertainty, poor sentiment, and crude oil supply risks are driving the market downturn.
Experts also noted that the tariff announcement on April 2 has become a key event for the markets. While the impact of these tariffs has been somewhat priced in, the reality could be worse initially before improving as possible concessions and exclusions are made.
Akshay Chinchalkar, Head of Research at Axis Securities, commented, “Reciprocal tariffs may be watered down but they are still coming, and that’s causing plenty of volatility.” He added that large institutional players are likely lightening up their positions ahead of the final tariff announcements, contributing to the market’s wild swings.
At the start of today’s trading, Indian stocks faced heavy selling pressure, with both indices in the red due to tariff concerns. The FMCG index was down by 0.5% at BSE, and the BSE Bank index ended a two-day winning streak. IT majors like Infosys, TCS, and Persistent Systems saw declines of up to 4%.
In sectoral indices, most sectors, except for media and oil & gas, are trading in the red at the National Stock Exchange (NSE). (ANI)
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