Sensex Ends 2-Days Gaining Streak on October 13 Amid Global Market Sentiment

Indian equity benchmarks Sensex and Nifty opened lower on October 13, ending a two-day winning streak as broad-based selling gripped the markets. The downtrend was largely driven by weak global cues, following U.S. President Donald Trump’s announcement of steep new tariffs on Chinese imports.

As of 11:45 AM, the Sensex had dropped 0.42% to 82,156.03, while the Nifty was down 0.43% at 25,176. The broader markets mirrored the weakness, as both the BSE Midcap and Smallcap indices slipped by around 0.5%.

Sectoral Overview

Sectors such as IT, metals, real estate, and consumer durables led the decline. However, auto stocks provided some relief, bucking the broader downtrend with modest gains.

US-China Trade Tensions

Market sentiment was rattled after President Trump on Friday unveiled plans to impose an additional 100% tariff on Chinese goods, alongside new export restrictions on key U.S.-developed software. Indian IT stocks followed suit when markets opened Monday. The Nifty IT index fell over 230 points (0.65%) to 35,377.55 by 9:23 AM. Heavyweight Infosys dropped over 1%, ranking among the top laggards.

Profit Booking at Higher Levels

In addition to external factors, domestic markets may be witnessing profit-taking after last week’s strong rally. The Sensex had surged over 1,253 points (1.6%), while the Nifty 50 climbed 391 points (1.6%), its best weekly performance in three months. The Nifty had also crossed the 25,300 mark for the first time since September 22.

With indices trading near recent highs, investors appear to be locking in gains, contributing to Monday’s decline.

Volatility Spikes

India VIX, the volatility index that gauges near-term market sentiment, spiked over 11% to 11.25, reflecting heightened caution among investors amid escalating geopolitical tensions.

Gold Hits Record High

In a sign of risk aversion, investors turned to safe-haven assets. Gold futures (December expiry) on MCX surged to a fresh lifetime high of ₹1,23,680 per 10 grams. Other active contracts also posted sharp gains, rising more than 1% each.

The surge in gold prices indicates a shift in investor preference away from risk assets like equities, adding further pressure to stock markets.

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