Mumbai, Oct 14: Indian equity markets slipped on Monday, snapping a two-day winning streak, as global uncertainty and renewed tariff tensions between the US and China weighed on investor sentiment. A sharp sell-off in IT and FMCG stocks contributed to the decline, despite resilience in the banking and financial sectors.
The benchmark BSE Sensex fell by 173.77 points, or 0.21%, closing at 82,327.05. It had opened on a weak note and touched an intraday low of 82,043.14 before recovering some ground in the second half. Meanwhile, the NSE Nifty 50 ended the day 58 points lower at 25,227.35, with declines in 30 of its 50 constituents.
The market mood turned cautious after the announcement by US President Donald Trump of an impending 100% tariff on Chinese goods starting November 1, escalating fears of another round of trade tensions that could impact global supply chains and economic stability.
Sectoral Performance and Key Movers
Losses were led by technology and FMCG sectors. Among the major laggards were Tata Motors, which declined ahead of the record date related to its commercial vehicle business demerger, along with Infosys, Hindustan Unilever, ITC, Power Grid, and TCS.
On the flip side, gains in Adani Ports, Bajaj Finance, Bajaj Finserv, and Axis Bank helped cushion the overall fall. The BSE SmallCap index dropped 0.43%, and the MidCap index slipped 0.18%.
Among sectoral indices, the IT index was the worst performer, down nearly 0.90%, followed by capital goods, FMCG, and telecom. However, banking, utilities, realty, and financial services showed relative strength.
Broader Market Breadth & Global Cues
The broader market reflected weakness, with declining stocks outnumbering advancers. On the BSE, over 2,600 stocks closed in the red, while around 1,660 advanced, and 168 remained unchanged.
Globally, most Asian markets ended lower, with South Korea’s Kospi, Shanghai Composite, and Hong Kong’s Hang Seng all in the red. Markets in Japan were closed due to a public holiday. On the other hand, European stocks opened higher, bucking the broader trend.
US markets had ended sharply lower on Friday, with the Nasdaq plunging over 3.5%, the S&P 500 falling 2.7%, and the Dow Jones losing nearly 2%. Rising concerns over inflation, interest rates, and geopolitical tensions have continued to unsettle global equities.
Oil and Institutional Flow
Crude oil prices climbed, with Brent crude rising by nearly 1.8% to hover around $63.84 per barrel, adding another layer of complexity to the inflation outlook.
On the domestic front, Foreign Institutional Investors (FIIs) remained net buyers, picking up equities worth over ₹459 crore on Friday, as per exchange data. However, the cautious global backdrop limited further buying enthusiasm.
With rising global volatility and geopolitical risks returning to the spotlight, analysts expect Indian markets to remain range-bound in the near term. The focus will now shift to quarterly earnings announcements, global macroeconomic indicators, and policy cues from major central banks.
Investors are advised to tread carefully, keeping an eye on both domestic fundamentals and international developments that could sway market direction in the coming weeks.