Nifty slipped below the crucial 23,600 mark, hitting a low of 23,572 after rising 67.85 points to 23,736.50 in early trade
Equity benchmark indices Sensex and Nifty traded lower on Wednesday after a seven-session rally, as investors resorted to profit booking amid lack of clarity on US tariff policies.
Sensex, which opened on a firm note, touched an intraday high of 78,167.87, gaining 150.68 points. However, selling pressure in select heavyweight stocks dragged the index down by 398.06 points to a low of 77,619.13.
The NSE Nifty slipped below the crucial 23,600 mark, hitting a low of 23,572 after rising 67.85 points to 23,736.50 in early trade.
Among the laggards, Tech Mahindra, NTPC, Cipla, Axis Bank, and Dr Reddy’s Laboratories weighed on the indices.
Key Factors Behind Market Decline:
Profit Booking: After a sharp rally over the past week, investors opted to book profits, leading to a pullback. “The market is witnessing profit booking at higher levels after a strong uptrend. However, the overall short-term structure remains positive,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
US Tariff Concerns: Investors remained cautious amid uncertainty over the US trade policy. US President Donald Trump has promised a sweeping tariff announcement on April 2, referring to it as a “Liberation Day” against trading partners he has accused of unfair trade practices. “There will be some exceptions, but not too many,” Trump said in a recent interview. This lack of clarity has unsettled global markets, including India.
Rupee Weakness: The Indian rupee depreciated by 6 paise to 85.78 against the US dollar in early trade, weighed down by weak domestic equities and a strengthening greenback. Forex dealers cited liquidity constraints, concerns over reciprocal tariffs, and month-end dollar demand from importers as factors pressuring the rupee. On Tuesday, the currency snapped its seven-session winning streak, closing 11 paise lower at 85.72 per dollar.