The stock market experienced a decline due to several factors, including weak earnings reported by Indian banks, adjustments in the MSCI index, domestic institutional investors (DIIs) being stuck at higher levels, rising US bond yields, and foreign institutional investors (FIIs) shifting their focus from India to China, as per a report by ‘Mint’
Another major contributor to market volatility was the uncertainty surrounding tariffs imposed by US President Donald Trump.
“Stock markets react negatively to uncertainty, and since Trump’s election, unpredictability has been a recurring theme,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, in a statement to PTI. He further explained that Trump’s repeated tariff announcements have unsettled global markets. His recent move to impose an additional 10% tariff on Chinese imports reinforces the belief that he is leveraging trade threats in the early phase of his presidency to negotiate deals favorable to the US.
Additionally, the US dollar’s strength against major global currencies has posed challenges for emerging markets like India. The dollar index stood at 107.35 on Friday, according to ‘The Times of India’. A stronger dollar makes foreign investments more expensive, leading to capital outflows from equity markets.
Biggest Losers on Sensex
Among the Sensex stocks, IndusInd Bank’ suffered the steepest decline, plunging ‘5.19%’ to ‘₹992’ ‘Tech Mahindra’ followed with a ‘4.57’ drop, trading at ‘₹1,514.70’ while ‘Mahindra & Mahindra’ fell ‘4.32%’, closing at ‘₹2,608.15’.
Out of the 30 Sensex stocks, only one ended in the green— ‘Reliance Industries’, which gained ‘0.40%’, trading at ‘₹1,211.85’.
