Sensex Plunges 762 Points, Nifty Falls to 24,538 Amid Weak Asian Cues and Trade Worries

Indian benchmark indices opened sharply lower on Monday, weighed down by weak cues from Asian markets and rising global trade tensions. The BSE Sensex tumbled 762.24 points to 80,688.77, while the NSE Nifty declined 212.25 points to settle at 24,538.45 in early trade.

Market experts attributed the decline to sustained foreign fund outflows and investor concerns over renewed trade frictions, particularly following the U.S. administration's latest move to raise tariffs on steel imports.

Top Movers

Among the major laggards on the Sensex were HDFC Bank, HCL Tech, Reliance Industries, Infosys, Tech Mahindra, Bajaj Finance, L&T, Titan, TCS, and Tata Steel.

Conversely, Hindustan Unilever, Adani Ports, Mahindra & Mahindra, IndusInd Bank, and Nestle managed to post gains.

Global Market Drag

Across Asia, key indices were trading in the red, including South Korea’s Kospi, Japan’s Nikkei 225, Shanghai Composite, and Hong Kong’s Hang Seng.

U.S. markets had closed on a mixed note last Friday, further amplifying the cautious mood among investors.

The sell-off in domestic equities was also fueled by Foreign Institutional Investors (FIIs) offloading stocks worth ₹6,449.74 crore on May 30, 2025, according to exchange data.

Trade Tensions Resurface

Adding to the global uncertainty, U.S. President Donald Trump announced a decision to double tariffs on steel imports to 50%, also affecting aluminium. The move has raised concerns of escalating trade tensions and volatility in global markets.

“There are clear global headwinds like tariff hikes that are likely to restrain any breakout rally,”

said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“However, stronger domestic fundamentals may provide a cushion at lower levels.”

Strong Domestic Growth a Silver Lining

Despite global pressures, India’s macroeconomic fundamentals remain strong. The country’s GDP grew 7.4% in the January–March quarter (Q4 FY25), exceeding expectations. For the full fiscal year 2024–25, growth stood at 6.5%, pushing the economy’s size to $3.9 trillion.

This strong performance, driven by higher private consumption and robust construction and manufacturing activity, positions India to potentially surpass Japan as the world’s fourth-largest economy in FY26.

Cautious Outlook Ahead

According to Vikas Jain, Head of Research at Reliance Securities, “Global markets, particularly Asian indices and U.S. futures, remain under pressure due to geopolitical tensions involving Russia and Ukraine, as well as renewed concerns over U.S. trade policy.”

Additionally, Brent crude prices jumped 2.20% to $64.16 per barrel, stoking inflation concerns.

On Friday (May 30), ahead of Monday’s plunge, the Sensex had already shown weakness, declining 182.01 points (0.22%) to 81,451.01, while the Nifty fell 82.90 points (0.33%) to 24,750.70.