On Monday, February 10, 2025, the Indian stock market experienced a notable downturn, influenced by global trade tensions and domestic economic factors.
Market Performance
The benchmark indices closed in the red, with the BSE Sensex declining by 548.39 points (0.70%) to settle at 77,311.80, and the Nifty 50 dropping 178.35 points (0.75%) to end at 23,381.60.
Sectoral Impact
Metals: The metals sector was significantly affected, with the Nifty Metal index falling by 3%. Major players like Tata Steel and JSW Steel saw their shares decline by approximately 4% each.
Information Technology: Tech Mahindra stood out by registering a gain of 0.41%, closing at ₹1,698.60, outperforming peers such as Infosys and Tata Consultancy Services.
Automobiles: Maruti Suzuki India faced a decline of 1.13%, closing at ₹12,899.10, underperforming in the auto sector.
Banking: The State Bank of India (SBI) experienced a marginal decline of 0.03%, closing at ₹736.85, yet it outperformed some of its banking counterparts.
Currency Market
The Indian rupee weakened to an all-time low of 87.95 against the U.S. dollar, closing at 87.4750. This decline was attributed to concerns over new U.S. tariffs and persistent foreign portfolio outflows.
Key Influencing Factors
The market downturn was primarily driven by global trade uncertainties following the U.S. administration's announcement of new 25% tariffs on all steel and aluminum imports. Additionally, domestic factors such as disappointing third-quarter earnings and reduced investor confidence contributed to the decline.
Looking Ahead
Investors are advised to monitor global trade developments and domestic economic indicators closely. Staying informed and adopting a cautious approach will be essential in navigating the current market volatility.
