Uncertainty over tariffs, FII outflows hit mkt sentiment

FPJ News Service mumbai

Indices Sensex and Nifty declined for the third day on Thursday as tariff threats, weak Asian markets, inflationary pressures, and foreign fund outflows hurt investors’ sentiment. “Domestic equity indices experienced minor losses as rising concerns over potential US tariffs on Indian goods led to capital outflows.

Additionally, the proposed trade policy is expected to exert inflationary pressures, with the latest Fed minutes indicating that an interest rate cut may be delayed.However, the broader market showed an initial recovery, supported by expectations of improving consumption from Q1FY26, driven by moderating domestic inflation and the recent RBI rate cut,” Vinod Nair, a senior market researcher and analyst said.

Senior investment strategist Dr VK Vijayakumar said, “Trump’s tariff talks continue to impact markets. Trump’s declaration yesterday that the US will impose 25 per cent tariffs on automobiles, semiconductors and pharmaceuticals impacted India’s pharma stocks since India’s leading pharma companies are major exporters to the US. If this is implemented in early April as Trump declared, it will impact the US, too, through shortages and higher prices. It appears that Trump’s intention is to negotiate and extract concessions before tariffs are imposed. It remains to be seen how this will pan out.

“A positive news is the RBI indicating growth recovery in H2 FY25. This augurs well for growth and earnings recovery in FY26. Market will start responding positively to the high frequency data indicating growth recovery. Beaten down midcaps like defence stocks are witnessing some buying.” The 30-share BSE Sensex dropped 203.22 points or 0.27 per cent to settle at 75,735.96. During the day, it tanked 476.17 points or 0.62 per cent to 75,463.01. The NSE Nifty dipped 19.75 points or 0.09 per cent to 22,913.15.