Domestic indices continue to witness blood bath in late morning deals

Domestic equity indices continued to witness a blood bath in late morning deals as fears over a global trade war sparked by U.S. President Donald Trump’s tariffs fueled a risk-off mood. The broader markets were also facing the heat of selling; the BSE mid-cap index declined by 3.91 per cent and the small-cap index was down 5.35 per cent.  Meanwhile, the India VIX has surged over 50%. Sentiments remained weak as CareEdge Ratings in a report said the imposition of high reciprocal tariffs by the US on other competing nations raises the possibility of increased dumping by those nations in India, as well as in other export markets, which could negatively impact certain sectors.

On the sectoral front, Asian markets were trading in red, following weak cues from the global markets, amid ongoing concerns about a global trade war after China announced retaliatory tariffs on U.S. goods in reaction to U.S. President Donald Trump's new levies that could fuel inflation and damage the global economy. Back home, all the sectoral indices on the BSE were trading in red led by Metal, Industrials, Basic Materials, IT and Capital Goods.

The BSE Sensex is currently trading at 72492.57, down by 2872.12 points or 3.81% after trading in a range of 71425.01 and 73149.12. All the 30 stocks were declining on the index. 

The broader indices were trading in red; the BSE Mid cap index was down by 3.91%, while Small cap index down by 5.35%.

The top losing sectoral indices on the BSE were Metal down by 6.34%, Industrials down by 5.24%, Basic Materials down by 5.12%, IT down by 4.94% and Capital Goods down by 4.83%, while there were no gainers. 

The top losers on the Sensex were Tata Steel down by 8.54%, Tata Motors down by 7.89%, Larsen & Toubro down by 6.24%, HCL Technologies down by 6.00% and Infosys down by 5.06%, while there were no gainers.  

Meanwhile, Union Commerce and Industry Minister Piyush Goyal is likely to hold a meeting with exporters on April 9, to review the issues to be faced by Indian traders due to the imposition of an additional 26 per cent reciprocal tariffs by the Trump administration. The Senior officials of the commerce ministry and representatives of export promotion councils (EPCs) and the Federation of Indian Export Organisations (FIEO) will attend the deliberations.

Recently, FIEO has stated that the 26 percent tariffs or import duties announced by US President Donald Trump on India will definitely affect domestic players. However, it also added that India is much better placed than many other countries and expressed optimism about the proposed bilateral trade agreement (BTA), which is currently being negotiated between the both the countries, to provide relief from these reciprocal tariffs.

The US accounts for about 18 per cent of India's total goods exports and 6.22 per cent in imports and 10.73 per cent in bilateral trade. Meanwhile, exports have declined for the fourth month in February due to global economic uncertainties. Besides, Indian export sectors such as shrimp, carpet, medical devices and gold jewellery will face the impact of the 26 per cent additional import duties announced by the US.

The CNX Nifty is currently trading at 22009.10, down by 895.35 points or 3.91% after trading in a range of 21743.65 and 22190.00. All the 50 stocks were declining on the index.

The top losers on Nifty were Trent down by 15.82%, Tata Steel down by 8.46%, Tata Motors down by 7.85%, JSW Steel down by 7.52% and Shriram Finance down by 7.47%, while there were no gainers.

All Asian markets were trading lower; Hang Seng declined 2697.15 points or 13.38% to 20,152.66, Shanghai Composite weakened 242.75 points or 7.83% to 3,099.26, Straits Times fell 293.43 points or 8.31% to 3,532.43, KOSPI dropped 132.16 points or 5.66% to 2,333.26, Nikkei 225 slipped 2365.9 points or 7.53% to 31,414.68 and Taiwan Weighted lost 2065.87 points or 10.74% to 19,232.35.