FPJ News Service mumbai

Key indices closed marginally lower on Monday as US-China trade tensions and reciprocal tariff worries are on the rise again weighing on market sentiments across the globe. After losing 796.75 points to 80,654.26 in intra-day trade, the 30-share BSE Sensex witnessed high volatility, and closed 77.26 points lower at 81,373.75.  The NSE Nifty lost 34.10 points at 24,716.60.

“The market structure favours continuation of the ongoing consolidation phase. There are global headwinds like renewed tariff concerns that will restrain a breakout rally. At the same time, there are domestic tailwinds that will support the market at lower levels. President Trump’s 50% tariffs on steel and aluminium is a clear message that the tariff and trade scenario will continue to be uncertain and turbulent.

This headwind will impact markets. “On the domestic front the tailwinds are getting stronger with the latest Q4 GDP growth data coming at 7.4%, which is much better-than-expected. Trends in consumption expenditure and capital expenditure are promising. This along with low inflation and the expected continuation of the rate cutting policy provide the perfect setting for sustained economic growth in FY26. The only challenge is the tepid earnings growth,” Dr VK Vijayakumar, a veteran investment strategist, opined.

“The market continued its consolidation phase for the third consecutive week, influenced by renewed concerns over a potential tariff war and escalating geopolitical tensions between Russia and Ukraine. While global uncertainties have led investors to adopt a risk-averse approach, the Indian market has demonstrated resilience,” said Vinod Nair, head of research, at a leading investment services company.