Markets close lower amid US-China tariff tensions, recover from day’s lows 

Markets closed marginally lower on Monday, snapping a two-session rally, as investors turned cautious following US President Donald Trump’s announcement of a proposed 100 per cent tariff on China, though a late-hour buying spree helped benchmarks recover from their worst levels of the day.

The BSE Sensex settled 173.77 points or 0.21 per cent lower at 82,327.05 after hitting an intraday low of 82,043.14, while the NSE Nifty 50 declined 58.00 points or 0.23 per cent to close at 25,227.35. The benchmarks opened significantly lower, with Sensex starting at 82,049.16 against its previous close of 82,500.82, and Nifty opening at 25,177.30 compared to the previous close of 25,285.35.

“Indian markets closed on a resilient note today, having opened significantly lower in response to global sentiment shaken by President Trump’s announcement of a proposed 100 per cent tariff on China and Beijing’s warning of strong countermeasures if the threat is not withdrawn,” said Ashika Institutional Equities in its market commentary.

Among the Nifty 50 constituents, Adani Ports emerged as the top gainer, surging 2.10 per cent to close at ₹1,439.00 from its previous close of ₹1,409.40. Bajaj Auto gained 1.50 per cent to end at ₹9,081.00 from ₹8,946.50, while Bajaj Finance rose 1.48 per cent to ₹1,039.00 from ₹1,023.85. Shriram Finance advanced 1.20 per cent to ₹673.00 from ₹665.05, and Bajaj Finserv climbed 0.98 per cent to ₹2,023.90 from ₹2,004.30.

On the losing side, Tata Motors bore the maximum brunt, declining 2.20 per cent to ₹664.00 from ₹678.95. Infosys dropped 1.49 per cent to ₹1,492.40 from ₹1,514.90, while Wipro fell 1.43 per cent to ₹245.15 from ₹248.70. Hindustan Unilever shed 1.28 per cent to close at ₹2,496.60 from ₹2,528.90, and Nestle India declined 1.19 per cent to ₹1,185.20 from ₹1,199.50.

The broader market breadth remained weak, with 2,627 stocks declining against 1,664 advances on the BSE, while 168 stocks remained unchanged. A total of 157 stocks hit their 52-week highs, while 122 touched their 52-week lows.

“Renewed US–China trade tensions sparked broad-based profit booking in early Monday trade, reflecting heightened investor caution. However, reports of an Indian trade delegation visiting the US this week lifted sentiment, fueling optimism about a potential breakthrough in bilateral trade negotiations,” said Ponmudi R, CEO of Enrich Money.

Sectoral performance was mixed. Nifty Financial Services gained 0.16 per cent to close at 26,885.25, while Nifty Bank edged up 0.03 per cent to 56,625.00. Nifty Midcap 100 rose 0.11 per cent to 58,762.35, and Nifty Next 50 declined 0.17 per cent to 68,569.65. The India VIX surged approximately 9 per cent, indicating heightened nervousness among investors.

“The domestic markets started the week on a cautious note as the ongoing US government shutdown and escalating US-China trade tensions triggered risk-off sentiment across Asia,” said Vinod Nair, Head of Research at Geojit Investments Limited.

In the currency market, the rupee traded positive with gains of 0.06 at 88.64 as foreign institutional investor selling eased. “Reports of India increasing energy imports from the US to maintain trade balance lent further support to the rupee,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

Gold prices opened sharply higher with a strong gap up of ₹2,000, trading above ₹1,23,200 per 10 grams, as renewed US-China trade tensions reignited safe-haven demand.

Looking ahead, analysts remain cautiously optimistic. “We suggest maintaining a positive bias as long as the Nifty holds above the 25,000 mark, and adopting a strategy of buying quality stocks on dips,” said Ajit Mishra, SVP Research at Religare Broking. Immediate resistance for Nifty is placed at 25,350-25,400, while support lies at 25,150-25,100 levels.

Published on October 13, 2025