Markets Decline as Metal Stocks Fall; Trump’s Tariff Plans Weigh on Sentiment

Indian stock markets opened lower on Monday as concerns over global trade and weak international cues impacted investor sentiment. Metal stocks saw the biggest decline after U.S. President Donald Trump hinted at new tariffs on steel and aluminium.

Sensex and Nifty Drop

The Sensex opened at 77,789.30, slightly lower than its previous close of 77,860.19. It is currently trading at 77,409.34, down by 450.85 points (0.58%).
The Nifty opened at 23,559.95 compared to its previous close of 23,543.80 and is now at 23,416.15, losing 143.80 points (0.61%).

Metal Stocks Hit Hard

Metal stocks faced heavy selling pressure:

• Tata Steel fell 3.30%
• JSW Steel dropped 2.70%
• Hindalco declined 2.43%

The decline followed Trump’s announcement of potential new tariffs on steel and aluminium imports.

Other Major Losers

• Power Grid (-2.64%)
• Cipla (-2.57%)

Gainers in the Market

Consumer goods stocks outperformed, providing some support to the market:

• Britannia Industries gained 2.43%
• Bharti Airtel rose 0.93%
• HUL increased 0.92%
• Tata Consumer went up 0.64%
• Nestlé India added 0.49%

Impact of RBI Policy and FII/DII Activity

• Foreign Institutional Investors (FIIs) sold stocks worth ₹470 crore on February 7
• Domestic Institutional Investors (DIIs) bought ₹454 crore worth of stocks

The Reserve Bank of India (RBI) recently cut the repo rate by 25 basis points, reducing it from 6.50% to 6.25%, marking its first rate cut in five years. This move aims to control inflation and boost economic growth, benefiting sectors like real estate, banking, and automobiles.

Upcoming Data to Watch

Investors are awaiting crucial inflation data from India and the U.S., scheduled for February 12, 2025.

The RBI expects GDP growth for FY26 at 6.7% and inflation to ease to 4.2%. However, rising global uncertainties could impact market stability in the coming weeks.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.