Markets tumble as investors turn cautious ahead of Trump’s tariff move

The domestic share markets extended their losses for the second straight session on Tuesday ,on the first day of new financial year 2025-26 (April 1) with Nifty finishing below 23,200, weighed down by selling across the sectors except media and telecom.Investor sentiment remained cautious amid worries over U.S. President Donald Trump’s push for broad reciprocal tariffs. At close, the Sensex was down 1,390.41 points or 1.80 percent at 76,024.51, and the Nifty was down 353.65 points or 1.50 percent at 23,165.70. As per agency report, investors' wealth dropped by Rs 3.44 lakh crore on Tuesday as markets fell sharply. 
IndusInd Bank, Trent, Bajaj Auto, Jio Financial, HDFC Life were the top gainers on the Nifty, while losers included HCL Technologies, Bajaj Finserv, HDFC Bank, Shriram Finance, Bharat Electronics. On the sectoral front, except media (up 2 percent), oil & gas (up 0.6 percent), telecom (up 2 percent), all other indices ended in the red with IT, realty, consumer durables shed 2-3 percent each. BSE Midcap index was down 1 percent and smallcap index ended on a flat note.
Rupee Close:
On 01 April'25,the Indian rupee continued to strengthen toward 85.5 per US dollar on Tuesday, reaching its highest level since late December 2024,largely driven by a resurgence in foreign fund inflows into the capital markets. According to information, the local currency appreciated by over 2% this month, marking its biggest gain since November 2018, when it had risen by more than 5%. However, further gains were capped by weak domestic markets and a rising US dollar. Additionally, investors remained cautious amid growing global trade tensions and the potential economic impact of looming US reciprocal tariffs.
Trading Guide:
Vinod Nair, Head of Research, Geojit Investments reportedly quoted as saying, amid heightened global volatility ahead of the anticipated US reciprocal tariff announcement tomorrow, the domestic market witnessed a significant sell-off today. Investors are eagerly awaiting the specifics of these tariffs while also keeping a close eye on ongoing negotiations for a potential Indo-US trade agreement. The IT sector was among the hardest hit due to its substantial exposure to the US market, and real estate stocks fell following Maharashtra's upward revision of ready reckoner rates, which affect property valuations.
Additionally, rising oil prices further dampened market sentiment. Despite the short-term volatility related to tariffs, positive domestic factors such as an expected recovery in earnings growth, potential interest rate cuts by the RBI, and moderation in valuations are likely to provide stability and support for investors.

(Business Correspondent)