Nifty and Sensex fell heavily in market opening after Budget 2025.

Nifty and Sensex fell heavily in market opening after Budget 2025

The Nifty 50 index fell 0.93% on Monday, February 3, 2025, closing at 23,265.1 points. The decline was influenced by global market reactions to the recent sweeping tariffs imposed by US President Donald Trump on imports from Canada, Mexico and China, raising fears of a wider trade war.

All 13 major domestic equity sectors declined, with the domestically focused small-cap and mid-cap indices falling 1.9% and 1.3%, respectively. Government-owned companies declined 4%, wiping out gains from last week’s pre-budget rally. Larsen & Toubro, a major player in the capital goods sector, experienced a 4% decline, extending its losses from the previous session. Other companies in the sector, such as Hitachi Energy and Thermax, suffered significant declines of 8% and 7%, respectively, after being downgraded by analysts due to concerns over modest capital expenditure growth. Oil marketing companies were also affected, with Bharat Petroleum Corporation, Indian Oil Corporation, and Hindustan Petroleum Corporation losing 3% to 7%. Analysts attributed this to the liquefied petroleum gas (LPG) subsidy set in the budget, meaning these companies will bear a 69% under-recovery by FY25, potentially limiting their earnings growth.Additionally, the Indian rupee crossed 87 against the U.S. dollar for the first time, reflecting a broader regional currency slowdown. The market’s near-term trajectory will depend on how investors react to these developments, which are universally seen as detrimental to economic growth.In summary, today’s decline in the Nifty 50 reflects global fears about rising trade tensions and their potential impact on economic growth, underscoring the interconnected nature of modern financial markets.

NSE Banned nine stock

 

SENSEX

The Indian stock market witnessed a significant decline on Monday, February 3, 2025, with the BSE Sensex closing 0.81% lower at 76,874.54 points, and the Nifty 50 index closing 0.93% lower at 23,265.1 points. The decline was mainly influenced by global market reactions to the recent sweeping tariffs imposed by US President Donald Trump on imports from Canada, Mexico and China, raising fears of a wider trade war.

The repercussions of these tariffs were felt across Asian markets, with the MSCI Asia ex-Japan index falling nearly 3%. In India, all major equity sectors witnessed a decline. State-owned enterprises lost 4%, wiping out gains from last week’s pre-budget rally. Shares of Larsen & Toubro, a major player in the capital goods sector, saw a 4% drop, continuing the downward slide from a 3.4% decline on Saturday. Other companies in the sector, such as Hitachi Energy and Thermax, experienced significant declines of 8% and 7%, respectively, after analysts downgraded them due to concerns over modest capital expenditure growth.

The oil marketing sector was also not untouched, with Bharat Petroleum Corp, Indian Oil Corp and Hindustan Petroleum Corp losing 3% to 7%. Analysts attributed this to the liquefied petroleum gas (LPG) subsidy set in the budget, which means oil marketing companies will bear a 69% under-recovery of FY25, potentially limiting their earnings growth.

Additionally, the Indian rupee weakened below 87 against the US dollar for the first time ever, reflecting a broader regional currency slowdown. The near-term trajectory of the market will depend on how investors react to these developments, which are universally seen as detrimental to economic growth.

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