India’s benchmark indexes settled barely changed on Monday, with enthusiasm over the uptick in domestic economy fizzling out in early trades as looming U.S. tariffs kept investors on the edge.
The Nifty 50 closed 0.02% lower at 22,199.3, extending its losses for a ninth straight session, while the BSE Sensex fell 0.15% to 73,085.94.
The indexes rose as much as 0.6% in the morning after data showed India’s economy expanded by 6.2% in the October-December quarter, picking up on increased government and consumer spending.
Six of the 13 major sub-indexes fell on the day. The broader mid-caps were muted while small-cap stocks lost 0.27%.
The second-heaviest stock in benchmark indexes, Reliance Industries, fell 2.4% to its lowest in nearly 16 months. The company’s unit, Reliance New Energy, is risking fine after a delay in setting up a battery cell plant, reported Bloomberg News.
“The uncertainty will persist until mid-April as investors need clarity on tariffs,” said Arun Malhotra, founder and chief investment officer at CapGrow Capital.
Indian stocks’ worst run in 29 years, wiping $1 trillion in wealth, may yet have legs
U.S. President Donald Trump threatened to impose reciprocal tariffs on several countries, including India, by early April. His tariffs on Mexico and Canada, and an additional 10% duty on China are expected to come into effect this week.
The uncertainty around tariffs, concerns over domestic economic and slowing earnings growth have triggered a $13 billion sell-off from foreign investors in 2025 so far.
“We do not find much value in Indian markets despite the severe correction,” said analysts, led by Sanjeev Prasad of Kotak Institutional Equities. Barring banks and non-bank lenders, most parts of the markets are expensive, spurring further selling pressure, they added.
Auto companies Mahindra and Mahindra, Eicher Motors and TVS Motor Company rose between 1% and 4.5% on strong February sales data while Hyundai Motor India and Bajaj Auto slipped 2% and 2.4%, respectively, on tepid sales growth.
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