Mon Feb 03 22:27:53 IST 2025: ## Indian Stock Market Plunges on Global Trade Fears

**Mumbai, India** – India’s stock markets experienced a significant downturn on Monday, February 3rd, driven by negative global sentiment fueled by renewed US trade protectionism. The benchmark Sensex index plummeted over 700 points, closing at 77,210.17 (a 0.38% drop), while the Nifty 50 index dipped below 23,250, ending the day at 23,358.55 (a 0.53% decline).

The sell-off followed a weekend announcement by US President Donald Trump imposing significant tariffs on China, Canada, and Mexico, threatening further action against the European Union. This sparked fears of escalating trade wars, sending shockwaves through global markets. Asian markets suffered heavy losses, with Tokyo, Seoul, and Jakarta each falling over 2%, while European markets also saw significant declines. The strengthening dollar, coupled with ongoing foreign capital outflows from India, further exacerbated the situation. Analysts also cited the upcoming Reserve Bank of India’s Monetary Policy Committee meeting as a contributing factor to market caution.

While both the Sensex and Nifty 50 saw some recovery during trading, the overall market sentiment remained bearish. Analysts are watching support levels around 23,100-23,200 for the Nifty 50. HDFC Securities analyst Nagaraj Shetti offered short-term trading recommendations for Nykaa (buy at ₹183, target ₹195, stoploss ₹177) and Tube Investments of India (sell at ₹3,090, target ₹2,940, stoploss ₹3,190). *Disclaimer: These recommendations are those of individual analysts and not Mint.*

Read More