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The domestic equity benchmarks experienced a sharp decline on Monday, marking the fourth consecutive day of losses. The downturn was fueled by escalating global trade tensions following the announcement of new tariffs on all US steel and aluminum imports by US President Donald Trump. The Nifty index closed below the 23,400 mark, with all sectors on the NSE registering losses. Realty and metal stocks were particularly hard hit. The looming threat of reciprocal tariffs and the broader implications for global trade have significantly dampened investor sentiment. ' The market decline is also being attributed to rising domestic yields as investors exhibit increasing caution towards riskier assets. This shift has led to a flight to safety, with investors seeking refuge in safe-haven assets such as gold. The S&P BSE Sensex tanked 548.39 points or 0.70% to 77,311.80. The Nifty 50 index declined 178.35 points or 0.76% to 23,381.60. In four consecutive trading sessions, the Sensex and Nifty declined by 1.61% and 1.50%, respectively. Bajaj Finance (down 2.15%), Reliance Industries (down 1.06%) and HDFC Bank (down 0.97%) were major drags. The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 2.06%, and the S&P BSE Small-Cap index slumped 2.25%. The market breadth was weak. On the BSE, 1070 shares rose and 3032 shares fell. A total of 123 shares were unchanged. Indian Rupee hit a fresh record low against the US dollar on Monday. The currency opened at 87.94 and touched a fresh all-time low of 87.9525 and is currently trading at 87.45. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 5.55% to 14.45. Politics: The Bharatiya Janata Party (BJP) won the Delhi legislative assembly elections with 48 out of 70 seats, marking its return to power in the capital after 27 years, while the Aam Aadmi Party (AAP) secured 22 seats. A party that wins more than the halfway mark of 35 seats can form the government. AAP leaders Arvind Kejriwal and Manish Sisodia lost seats to BJP candidates. The BJP's campaign focused on financial assistance for women and senior citizens, subsidies on essential goods, and infrastructure development. AAP's vote share declined by approximately 10% compared to the previous election. The Congress party failed to secure any seats for the third consecutive time but saw a slight increase in its vote share. Numbers to Track: The yield on India's 10-year benchmark federal paper was up 1.85% to 6.823 as compared with previous close 6.699. In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.4600, compared with its close of 87.5000 during the previous trading session. MCX Gold futures for the 5 April 2025 settlement gained 1.04% to Rs 85,775. The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.16% to 108.21. The United States 10-year bond yield added 0.04% to 4.489. In the commodities market, Brent crude for April 2025 settlement rose 81 cents or 1.08% to $75.47 a barrel. Global Markets: US Dow Jones index futures were up 160 points, suggesting a positive opening for US equities. European market advanced on Monday as investors awaited major data releases this week, including U.S. inflation data on Wednesday, German inflation and U.K. gross domestic product figures on Thursday, and the latest quarterly European growth data on Friday. Asian stocks ended mixed as U.S. President Donald Trump threatened additional tariffs, including on steel and aluminum. This inflationary measure could reduce the likelihood of rate cuts in the US. The individual indicated that 25% tariffs on all steel and aluminum imports into the US would be announced on Monday, with other reciprocal tariffs revealed on Tuesday or Wednesday. These comments followed German Chancellor Olaf Scholz's statement that the European Union was prepared to respond within an hour if the US imposed tariffs on European goods, underscoring the potential for an escalating trade conflict. China's retaliatory tariffs on certain US exports are scheduled to take effect on Monday, with no apparent progress in discussions between Beijing and Washington. China's Consumer Price Index (CPI) increased by 0.5% in January compared to the same month last year, according to the National Bureau of Statistics. This marks a rise from the 0.1% gain recorded in December. Wall Street experienced some recovery buying after significant declines on Friday, when Trump signaled intentions to impose tariffs on US imports to match levies from US trading partners on American goods. These plans were reiterated on Sunday. Trump on Sunday said that 25% tariffs on all steel and aluminum imports to the US would be announced on Monday, shortly after his 10% tariffs on China took effect. These tariffs will supplement existing duties on steel and aluminum, implemented during his previous term and maintained by the current administration, albeit at a reduced level. The move is expected to primarily affect imports from Canada, Brazil, and Mexico, the largest steel exporters to the US. Canada is also the leading aluminum exporter to the US. On Friday, the S&P 500 decreased by nearly 1%, and the NASDAQ Composite fell by 1.4%. The Dow Jones Industrial Average dropped by 1%. The Federal Reserve Chair is scheduled to testify before the House of Representatives on Tuesday and Wednesday, where the impact of tariffs on monetary policy is likely to be a prominent topic. Stocks in Spotlight: Tilaknagar Industries hit a lower limit of 20%, following an order from the Bombay High Court in a long-standing trademark dispute. The court dismissed Tilaknagar Industries (TI)'s motion seeking an injunction against the manufacturing and sale of alcoholic products bearing the Mansion House trademark by other parties. VST Tillers Tractors fell 7.34% after the company's consolidated net profit tanked 92.41% to Rs 1.28 crore in Q3 FY25, compared with Rs 16.87 crore reported in Q3 FY24. However, revenue from operations jumped 28.91% year on year to Rs 219.10 crore in the quarter ended 31 December 2024. Avanti Feeds advanced 2.90% after the company reported 86.59% jump in consolidated net profit to Rs 135.21 crore on 8.98% increase in revenue from operations to Rs 1,365.8 crore in Q3 FY25 over Q3 FY24. Mahindra & Mahindra (M&M) slipped 2.02%. The company said that its total production fell 3% to 98,470 units in the month of January 2025 as compared with 101,518 units produced in the same period last year. Varun Beverages declined 1%. The company has reported 36.1% jump in consolidated net profit to Rs 195.64 crore on a 38.3% increase in net revenues to Rs 3,688.79 crore in Q3 FY25 as compared with Q3 FY24. Electronics Mart India tumbled 7.22% after the company's consolidated net profit slipped 31.05% to Rs 31.55 crore in Q3 FY25 as against Rs 45.86 crore posted in Q3 FY24. However, revenue from operations jumped 6.21% to Rs 1,884.8 crore in Q3 FY25, compared with Rs 1,774.5 crore posted in Q3 FY24. Banco Products (India) hit an lower limit of 20% after the company's consolidated net profit tumbled 97.77% to Rs 30.93 crore in Q3 FY25 as against Rs 1,387.1 crore posted in Q2 FY25. Net sales stood at Rs 632.71 crore in Q3 FY25, down 28.81% as against Rs 888.81 crore posted in Q2 FY25. Rainbow Children's Medicare declined 1.51%. The company reported 10.6% increase in the company's consolidated net profit to Rs 68.69 crore in Q3 FY25 as against Rs 62.13 crore posted in Q3 FY24. Revenue from operations jumped 18.5% to Rs 398.08 crore in the quarter ended 31 December 2024. Amara Raja Energy & Mobility fell 3.5%. The company reported 23.36% jump in standalone net profit to Rs 311.83 crore on a 9.8% increase in revenue from operations to Rs 3,164.02 crore in Q3 FY25 as compared with Q3 FY24. Astra Microwave Products slipped 3.81%. The company's consolidated net profit jumped 9.3% to Rs 47 crore on 11.9% rise in revenue from operations to Rs 259 crore in Q3 FY25 over Q3 FY24. Alembic lost 1.37%. The company reported a 163% surge in consolidated net profit to Rs 26.09 crore, on a 47.3% jump in revenue from operations to Rs 57.92 crore in Q3 FY25 over Q3 FY24. Sun TV Network dropped 4.26% after the media company's standalone net profit declined 20.62% to Rs 347.17 crore on 10.38% drop in revenue from operations to Rs 793.58 crore in Q3 FY25 over Q3 FY24. Paras Defence and Space Technologies declined 1.85%. The company reported a consolidated net profit of Rs 15.04 crore in Q3 FY25, zoomed 125.82% as against Rs 6.66 crore posted in Q3 FY24. Revenue from operations spiked 33.63% to Rs 85.77 crore in Q3 FY25 as against Rs 64.18 crore recorded in the corresponding quarter last year. Shipping Corporation of India dropped 6.24% after the company reported 43.8% decline in consolidated net profit of Rs 75.52 crore in Q3 FY25 as against Rs 134.35 crore posted in Q3 FY24. Revenue from operations slipped 1.9% YoY to Rs 1,315.60 crore in the quarter ended 31 December 2024. VA Tech Wabag added 1.9% after the company announced that it has bagged a significant consortium order worth $371 million (approximately Rs 3,251 crore) from Al Haer Environmental Services Company. NHPC slipped 1.61% after the company reported a 47.03% decline in consolidated net profit to Rs 330.13 crore in Q3 FY25 from Rs 623.28 crore recorded in Q3 FY24. However, revenue from operations jumped 11.25% year on year (YoY) to Rs 2,286.76 crore in the quarter ended 31 December 2024. Powered by Capital Market - Live News
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