Sensex tanks 1.8%, Nifty closes below 23,200 amid uncertainty over Trump tariffs

“Amid heightened global volatility ahead of the anticipated US reciprocal tariff announcement tomorrow, the domestic market witnessed a significant sell-off today. Investors are eagerly awaiting the specifics of these tariffs while also keeping a close eye on ongoing negotiations for a potential Indo-US trade agreement,” said Vinod Nair, head of research, Geojit Investments Limited.

Investors slashed their equity bets ahead of the start of Trump’s reciprocal tariff imposition on imported goods from Wednesday, as the decision is expected to affect the advantage India had over the US for many years, said Prashanth Tapse, senior VP (research), Mehta Equities Ltd.

In fact, domestic markets underperformed other global indices as investors fear the tariff decision could hurt the sentiment and trigger further downfall, he said.

All major sectors came under pressure, with realty, IT, and financials among the top losers. The Nifty Financial Services index fell 2.18 per cent, while Nifty IT was down 2.45 per cent and Nifty Bank tanked 1.43 per cent.

Nifty Realty lost 3.11 per cent after Maharashtra government raised ready reckoner rates (RRR) by an average of 4.39 per cent across the state for fiscal 2025-26. RRR is the minimum property value the government sets for calculating stamp duty and registration charges. A higher RRR will mean property prices in Mumbai and other parts of the states will increase.

However, the broader indices showed relative resilience, losing less than 1 per cent each.

Among the Nifty 50 companies that lost the most on Tuesday were HCL Tech (3.64 per cent), Bharat Electronics Ltd (3.47 per cent), Bajaj Finserv (3.26 per cent), HDFC Bank (3.19 per cent) and Hindalco (2.78 per cent)

The next crucial support for Nifty lies around 23,100 (20 DEMA – double exponential moving average), and a breakdown below this level could further dampen sentiment, whereas holding above it may pave the way for a recovery, said Ajit Mishra – SVP, research, Religare Broking Ltd.

“Given the mixed signals, it is advisable to be cautious with index positions and maintain a stock-specific trading approach,” he said.

On Tuesday, foreign portfolio investors (FPIs) sold Rs 5,901.63 crore of equities. On the contrary, domestic institutional investors (DIIs) purchased Rs 4,322.58 crore of shares, according to the BSE’s provisional data.