Market plunge: Sensex, Nifty dive amid global uncertainty tariffs and trade wars take center stage

The Indian stock market is seeing a steep fall, with the S&P BSE Sensex dropping 255.49 points to 73,971.59 and the NSE Nifty50 dropping 86.70 points to 22,449.15 by 9:22 am. This decline is mainly because of the US's impending 104% tariffs on Chinese goods, causing widespread uncertainty and market volatility.

RBI monetary policy committee meeting looms

Today's Reserve Bank of India Monetary Policy Committee meeting should be bringing some relief, with the expectation of a 25-basis-point cut in interest rates by analysts. That should pump much-needed oxygen into the economy. But the impact of trade tensions and the ongoing US-China trade war should keep its gigantic footprint on the market.

Sectoral Performance  

Gainers:

• Power Grid Corporation: 1.90% increase
• Nestle India: 1.44% increase
• Hindustan Unilever: 0.98% increase
• M&M: 0.72% increase
•  Asian Paints: 0.63% increase

 Losers:

•    Tata Steel: 3.30% decrease
•  Tech Mahindra: 2.66% decrease
• Infosys: 2.16% decrease
• HCLTech: 1.93% decrease
•  TCS: 1.37% decrease

Expert Insights 

Dr. VK Vijayakumar, Chief Strategy Officer at Geojit Investments Limited, is of the opinion that India will be one of the least affected economies in such a trade war scenario because its domestic consumption economies are very robust. However, he cautions that a world recession or stagflation can strike the Indian economy severely.