Stock market today: Nifty50 below 24,550; BSE Sensex drops over 700 points as Donald Trump's 50% tariffs hit India

Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, ended in red on Thursday, a day after 50% US tariffs came into effect on India. While Nifty50 was below 24,550 BSE Sensex was over 700 points down.

Nifty50 slipped to 24,500.90, down 211.15 points or 0.85%. BSE Sensex also tanked to 80,080.57, down 705.97 points or 0.87%.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “The 50% tariff imposed on India which has already come into effect will weigh on market sentiments in the near-term. But the market is unlikely to panic since the market will view this high tariffs as a short-term aberration which will be resolved soon. The U.S. treasury secretary Scott Bessant’s comment that “ at the end of the day India and U.S. will come together” indicates the likely outcome. The market will discount this outcome without panicking.”


“The real challenge before the market is the high valuations and the tepid earnings growth. The strong pillar of support to the market is the aggressive buying by DIIs flush with funds. Any selling by FIIs will be easily neutralised by the aggressive buying by DIIs. In the near-term, with the export sectors facing headwinds, smart money will be chasing fairly valued domestic consumption themes. Investors can consider moving money from over-valued smallcaps to the safety of fairly valued largecaps with focus on domestic consumption."

The S&P 500 reached a new record closing high on Wednesday ahead of Nvidia's quarterly results, the week's most anticipated Wall Street event, which will test the sustainability of AI-related companies' current valuations.

US stock futures and Nvidia shares fell after the semiconductor company's revenue forecast failed to meet high expectations, affecting sentiment around the world's highest-valued listed firm.

The US currency showed weakness on Thursday as investors increased their positions anticipating a Federal Reserve interest rate cut in the coming month, following New York Fed President John Williams' indications about a possible reduction.

Crude prices decreased on Thursday as market participants evaluated US fuel consumption prospects near summer driving season's conclusion, whilst monitoring potential oil supply changes amidst India facing strict US tariffs on Russian oil imports.

Foreign portfolio investors sold shares worth Rs 6,516 crore net on Tuesday. Domestic institutional investors purchased Rs 7,060 crore net.

(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)