Sensex plunges over 600 pts, Nifty below 23,400: Trump tariff concerns among key factors weighing on markets

Stock market today news: Sensex, Nifty declined in trade on February 10 amid US President Donald Trump tariff concerns. 

Equity benchmark indices extended their losing streak for the fourth consecutive session on Monday, as fresh concerns over US tariff policies weighed on investor sentiment. The BSE Sensex dropped 671.15 points, or 0.86 percent, to hit the day’s low of 77,189.04, while the NSE Nifty fell 202.35 points, or 0.85per cent, to 23,357.60. Tata Steel, Power Grid, NTPC, Zomato, Sun Pharma, and Bajaj Finance were among the top drags on the indices.

Key factors behind the market decline:

1) Trump tariff concerns: US President Donald Trump announced plans to impose 25 percent tariffs on all steel and aluminium imports, escalating trade tensions. He also signalled potential reciprocal tariffs on nations that tax US imports, along with duties on pharmaceuticals, oil, and semiconductors. The move follows last week’s imposition of a 10 percent tariff on Chinese goods, prompting retaliatory measures from Beijing.

"The unpredictability surrounding US trade policies is unsettling investors globally. Frequent shifts in tariff decisions create uncertainty, impacting market sentiment," Shrikant Chouhan, Head of Equity Research at Kotak Securities told Reuters.

2) Weak rupee: The rupee depreciated 45 paise to a record low of 87.95 against the US dollar, pressured by a stronger greenback and weak domestic equities. The dollar index was quoted at 108, gaining strength after Trump’s latest tariff announcement.

"The Delhi election results, particularly the emphatic BJP victory, are a positive from a political standpoint. However, in the face of global headwinds, they are unlikely to drive a sustained market rally," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He added that with the US 10-year bond yield above 4.4 percent, foreign institutional investors (FIIs) are likely to continue selling on any market rise, limiting potential upside.

3) Mixed Q3 earnings: Corporate earnings for the third quarter have failed to lift sentiment, with companies like ITC, Swiggy, and NHPC reporting a decline in net profit.

Market participants are also awaiting January’s consumer price index (CPI) inflation data, set for release on February 12. On the global front, key data points such as US inflation figures, producer price index (PPI), and retail sales will be closely watched for further cues.

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Technical outlook

Hardik Matalia, Derivatives Analyst at Choice Broking, noted that Nifty may find support at 23,500, followed by 23,400 and 23,300. On the upside, 23,700 is seen as an immediate resistance level, followed by 23,800 and 24,000.

For Bank Nifty, support levels are placed at 50,000, followed by 49,700 and 49,500, while resistance is expected at 50,300, 50,500, and 50,800.

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