Taking Stock | Sensex, Nifty decline amid global sell-off post-US tariff announcement

Futures linked to the Dow Jones Industrial Average slid 546 points (1.22 percent), while S&P 500 futures fell 1.4 percent and Nasdaq-100 futures lost 1.7 percent.

Indian equities fell on February 3, tracking losses in global markets after US President Donald Trump announced new tariffs on key trading partners, including Canada, Mexico, and China.

The NSE Nifty 50 declined 0.52 percent to 23,361.05, while the BSE Sensex dropped 0.4 percent to 77,192.86 at closing.

Futures linked to the Dow Jones Industrial Average slid 546 points (1.22 percent), while S&P 500 futures fell 1.4 percent and Nasdaq-100 futures lost 1.7 percent.

European markets also saw sharp declines, with major indices down over 1 percent. In Asia, Japan’s Nikkei 225 closed 2.5 percent lower, South Korea’s Kospi fell 2.9 percent to 2,443.57, Hong Kong’s Hang Seng dropped 1.4 percent to 19,942.54, and the Shanghai Composite edged lower to 3,250.60.

On the domestic front, Indian shares closed little changed on Saturday following the federal budget announcement. A rally in consumer stocks, driven by a pledged personal income tax cut, was offset by losses in infrastructure stocks, as investors were disappointed with the investment outlay for Fiscal Year 2026.

Outlook for February 4

Prashanth Tapse, Senior VP (Research), Mehta Equities

Slump in global equity markets weighed negatively on Indian benchmarks after Trump announced tariffs on China, Mexico and Canada which fuelled pessimism amongst the investors. The strong bearish undercurrent triggered massive selling in mid- and small-cap stocks and the consumption-related FMCG and automobile stocks, as any let up in tariff war could trigger panic selling. Besides, rupee depreciating sharply and breaching above 87k mark against the dollar raised concerns that foreign investors are unlikely to reverse the selling trend.

Index	Prices	Change	Change%
Sensex	75,273.45	1,205.00	+1.63%
Nifty 50	23,306.45	394.05	+1.72%
Nifty Bank	53,708.10	1,102.45	+2.10%

Nifty 50 23,306.45 394.05 (1.72%)

Wed, Mar 25, 2026

• 1D
• 5D
• 1M
• 3M
• 6M
• 1Y
• 2Y

Biggest Gainer	Prices	Change	Change%
Shriram Finance	956.00	52.40	+5.80%

Biggest Loser	Prices	Change	Change%
Tech Mahindra	1,408.50	-24.20	-1.69%

Best Sector	Prices	Change	Change%
Nifty PSU Bank	8581.05	223.50	+2.67%

Worst Sector	Prices	Change	Change%
Nifty IT	29671.30	22.40	+0.08%

Vinod Nair, Head of Research, Geojit Financial Services

The global market got unsettled amid the onset of the 'Trade War,' as tariff conflicts between the US and other nations are unlikely to yield any economic benefits. Instead, it may cause challenges to the global economy, heightening global financial risks. International trade, which had flourished under the framework of globalisation, now faces threats from the new protectionist policies. Front and contour tariffs are expected to make the world less efficient and elevate global inflation & interest rates.

Ajit Mishra – SVP, Research, Religare Broking

Markets began the week on a weak note, influenced by global cues, and declined by over half a percent. After opening with a gap-down, Nifty fluctuated between gains and losses before settling at 23,361.05. Among sectors, IT posted decent gains, while pharma and auto saw marginal upticks. In contrast, energy, metal, and FMCG were the top laggards. The broader indices mirrored the benchmark’s trend, slipping nearly 1%-2%.

Concerns over Trump’s tariff announcements overshadowed the budget's impact, pushing the index toward its 20-week EMA, signaling caution amid consolidation. This phase may continue, with global cues, corporate earnings, and the upcoming MPC meeting playing a key role in market direction. Investors are advised to remain cautious and manage positions on both sides.

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty remained volatile before closing on a negative note. On the daily chart, the index managed to close above the critical 21EMA; however, sentiment appears fragile, and support may be broken in the near term. On the lower end, support is placed at 23,200/23,100, while on the higher end, resistance is placed at 23,400.