Mon Feb 03 11:32:14 UTC 2025: ## Indian Markets Dip Amidst Trump’s New Tariffs

**Mumbai, February 3, 2025** – Indian benchmark indices, the Sensex and Nifty, closed lower on Monday, mirroring a global downturn fueled by concerns over newly announced US tariffs. The Sensex fell 319.22 points (0.41%) to 77,186.74, ending a five-day rally, while the Nifty dropped 121.10 points (0.52%) to 23,361.05.

The decline follows US President Donald Trump’s announcement of tariffs on imports from China, Mexico, and Canada, set to take effect on Tuesday. These tariffs – 25% on most goods from Canada and Mexico, and 10% on Chinese goods – sparked pessimism among investors and contributed to a sharp fall in Asian and European markets. The US market also closed lower on Friday.

Larsen & Toubro, Tata Motors, Hindustan Unilever, Asian Paints, ITC, Power Grid, NTPC, and Reliance Industries were among the major laggards in the Sensex. However, Bajaj Finance saw a significant increase, along with Mahindra & Mahindra, Bajaj Finserv, Bharti Airtel, and Maruti.

The weakening rupee further exacerbated concerns, with analysts suggesting that foreign investors may continue selling off equities. Prashanth Tapse, Senior VP (Research) at Mehta Equities Limited, noted the impact of the depreciating rupee and the overall negative sentiment. Vinod Nair, Head of Research at Geojit Financial Services, described the situation as the onset of a “Trade War,” warning of potential economic challenges and heightened global financial risks.

Brent crude oil prices rose 1.15% to $76.50 a barrel. Foreign Institutional Investors (FIIs) sold equities worth ₹1,327.09 crore on Saturday, adding to the negative pressure. While the market saw significant volatility, the Sensex managed a marginal gain on Saturday, closing at 77,505.96. The Nifty, however, dipped to 23,482.15.

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