Key gauges end lower amid global tariff uncertainties

Indian equity benchmarks ended lower on Monday, tracking deep losses in heavyweights Reliance Industries, Eternal, and ICICI Bank amid global tariff uncertainties. Besides, weakness in the rupee and unabated flight of foreign capital from Indian equities also made investors jittery.

Some of the important factors in trade: 

Moodys forecasts 7.3% India’s GDP growth in FY26: Moody's Ratings has projected India to clock a 7.3 per cent growth in FY26, and said the strong economic expansion would support average household incomes and stimulate demand for insurance protection.

India’s merchandise exports likely to come under pressure: Crisil Ratings’ report has warned that India’s merchandise exports are likely to face strong headwinds due to uncertainty persists over India's trade negotiations with the US and concerns grow over further US tariffs on Russian crude oil purchases. 

GTRI suggests overhaul of import tariff structure, customs administration: In order to reduce trade costs, strengthen manufacturing competitiveness and revive export growth, the think tank GTRI has suggested an overhaul of Indian import tariff structure and customs administration. 

Rupee falls against US Dollar: Indian rupee breached the 91-a-dollar mark for the second time in a month and ended lower against the greenback, as renewed concerns over global trade uncertainties accelerated foreign fund withdrawal. 

Global front: European markets were trading lower amid rising geopolitical tensions following U.S. President Donald Trump's desire to take Greenland. Asian markets ended mixed as U.S. President Donald Trump's announcement of new tariffs on European countries dented demand for riskier assets. 

Finally, the BSE Sensex fell 324.17 points or 0.39% to 83,246.18 and the CNX Nifty was down by 108.85 points or 0.42% to 25,585.50.          

The BSE Sensex touched high and low of 83,539.93 and 82,898.31 respectively. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.43%, while Small cap index was down by 1.28%.

The top gaining sectoral indices on the BSE were FMCG up by 0.39%, Capital Goods up by 0.37% and Auto up by 0.11%, while Realty down by 1.94%, Energy down by 1.50%, Oil & Gas down by 1.32%, Telecom down by 1.08% and Utilities down by 0.94% were the top losing indices on BSE.

The top gainers on the Sensex were Interglobe Aviation up by 4.30%, Tech Mahindra up by 2.85%, Hindustan Unilever up by 2.27%, Bajaj Finance up by 2.18% and Kotak Mahindra Bank up by 2.02%. On the flip side, Reliance Industries down by 3.04%, ICICI Bank down by 2.26%, Eternal down by 2.19%, Titan Company down by 1.40% and Adani Ports &SEZ down by 1.39% were the top losers.

Meanwhile, India has stepped up efforts to deepen global economic engagement by signing a series of Free Trade Agreements (FTAs) with developed economies, and Union Minister for Commerce and Industry Piyush Goyal sees these agreements as significant opportunities for startups and entrepreneurs. He further noted that these agreements create certainty and confidence for investors while opening new markets for Indian goods and services.

He encouraged startups to explore startup-to-startup collaborations and partnerships with countries abroad to attract investment and expand globally, highlighting opportunities across services, mobility, payments, sustainability, renewable energy and advanced technologies. On deep-tech innovation, the Minister expressed optimism about the progress being made across the country. He noted that recent policy discussions have brought sharper focus to deep-tech development and said that the second Rs 10,000-crore Startup Fund of Funds announced by the Government will significantly support deep-tech startups, particularly at early and critical stages of growth. 

Goyal emphasized the importance of building strong domestic supply chains by connecting startups and small enterprises with large investors and manufacturers. He stated that institutions such as Invest India and DPIIT are working to facilitate these linkages, enabling startups to access captive demand, capital and scale. He encouraged entrepreneurs to explore emerging opportunities, take calculated risks and leverage India’s unmatched talent base to drive innovation-led growth.

CNX Nifty touched high and low of 25,653.30 and 25,494.35 respectively. There were 19 stocks advancing against 31 stocks declining on the index.      

The top gainers on Nifty were Interglobe Aviation up by 4.16%, Tech Mahindra up by 2.39%, Hindustan Unilever up by 2.29%, Kotak Mahindra Bank up by 2.22% and Maruti Suzuki up by 2.04%. On the flip side, Wipro down by 8.21%, Reliance Industries down by 3.07%, Eternal down by 2.87%,  Tata Motors Passenger down by 2.84% and Max Healthcare down by 2.51% were the top losers. 

European markets were trading lower; UK’s FTSE 100 decreased 66.69 points or 0.65% to 10,168.60, France’s CAC fell 134.94 points or 1.63% to 8,124.00 and Germany’s DAX lost 299.43 points or 1.18% to 24,997.70.

Asian markets ended mixed on Monday tracking Wall Streets’ fall last Friday amid renewed concerns over the Federal Reserve's independence after US President Trump suggested National Economic Council Director Kevin Hassett may not be his choice to become the next Federal Reserve chair, prompting traders to dial back expectations for rate cuts. Meanwhile, US President Donald Trump's announcement of new tariffs on European countries over Greenland and the release of mixed Chinese economic data have also kept market sentiments mixed. Official data showed that China's economy grew at a slower pace of 4.5% in Q4 from 4.8% in the previous quarter, but full-year 2025 growth came in as expected at 5%. Japanese shares declined as the yen rallied on safe haven demand due to rising geopolitical tensions over Greenland, while weak Japanese industrial output and core machinery data also weighed on market sentiments.