Sensex dives 600+ pts, Nifty slips below 24,800 as U.S. tariffs shake investor sentiment

The Indian stock market opens weak today, reacting sharply to the latest announcement from the United States. The U.S. government notifies fresh import tariffs of up to 50 percent on Indian goods, and this sudden development sends shockwaves across Dalal Street. Investors turn cautious as worries about global trade tensions rise once again.

At mid-morning, the Nifty 50 falls below the 24,800 level and trades near 24,794.30, down around 173 points or 0.69 percent. The BSE Sensex also tumbles more than 600 points, hovering around 81,073.59. Both benchmarks reflect a broad sense of nervousness among traders. Another set of data shows Nifty at 24,818.8, down 0.61 percent, while Sensex trades near 81,135.1, down by a similar 0.61 percent at 9:22 a.m. IST.

The weak opening is not limited to the headline indices. Mid-cap and small-cap stocks also suffer, slipping almost 1 percent each. The correction indicates a broad-based sell-off as investors cut positions across the market spectrum.

Why the Fall is Significant

The sudden fall in the indices comes after a positive session just a day earlier. On Monday, the markets closed with healthy gains, largely supported by a strong rally in IT stocks. That optimism has now been wiped out within hours. The reason for today’s slide is clear—trade war fears are back. A 50 percent tariff on Indian exports to the U.S. threatens to hurt sectors like pharmaceuticals, textiles, engineering goods, and auto components. Export-driven companies are among the most vulnerable, and their stocks see selling pressure right from the start.

Global markets also play a role in this reaction. Investors across the world stay cautious as they digest the U.S. move. The shock announcement adds to the already uncertain global environment where fears of slower growth and protectionist measures dominate sentiment.

Technical Levels to Watch

From a technical point of view, the Nifty shows immediate support around the 24,700 to 24,750 range. If the index manages to hold above these levels, some recovery could be seen later in the day. On the other hand, if this support breaks, the slide could deepen further. On the upside, resistance is visible near the 25,100 to 25,200 zone. Traders are watching these levels closely as they try to navigate the volatility.

The early fall below 24,800 is seen as a warning sign, highlighting how fragile the sentiment remains. The market will need strong positive triggers to regain confidence and climb back toward resistance levels.

Pre-Market Signals from GIFT Nifty

Before the opening bell, the GIFT Nifty gives a clear indication of caution. Futures on this platform trade weak, hovering around 24,905, showing a decline of about 70 points. These signals point toward the nervous mood of investors even before trading starts on domestic exchanges.

A Look Back at Monday’s Gains

The fall looks sharper when compared with the positive momentum of the previous session. On Monday, August 25, the Sensex and Nifty both end in the green, supported by heavy buying in technology stocks. The Nifty IT index jumps nearly 2.83 percent intraday and closes almost 2.37 percent higher. Big players like Infosys, TCS, and HCL Tech provide strong leadership to the rally.

This rally is supported by global cues as well. Comments from the U.S. Federal Reserve, which sound slightly dovish, boost risk appetite worldwide. Indian IT companies, which earn a large portion of their revenue from overseas markets, benefit the most from this sentiment.

Stock-Specific Action in Today’s Trade

Despite the overall weakness, some stocks manage to show gains in early trade. Bajaj Auto, Hindustan Unilever, Hero MotoCorp, and TCS move higher against the trend. On the other hand, pharmaceutical names such as Dr. Reddy’s Laboratories face selling pressure. Losses are also visible in other sectors sensitive to global trade disruptions.

Block deals add another dimension to today’s action. Sai Life Sciences, for example, sees transactions worth Rs 2,810 crore in morning trade. Such large movements suggest that while the mood is bearish, institutional investors continue to make selective plays.

Analysts’ Recommendations

Brokerages continue to guide traders through the volatile session. Mirae Asset Sharekhan, for instance, recommends long positions in Sun Pharma and Bharti Airtel for today’s session. Analysts believe that such stocks may offer relative stability amid the overall weakness. Sun Pharma, being a large pharmaceutical company with diversified markets, and Bharti Airtel, with strong telecom fundamentals, are seen as safer bets in the current environment.

The Broader Global Context

The weakness in Indian equities cannot be seen in isolation. Global markets are also struggling. In the U.S., investors wait for key earnings reports, especially from major companies like Nvidia. Wall Street remains cautious after a recent record-breaking surge. Analysts also highlight concerns over record levels of margin debt in U.S. markets, which raises questions about the sustainability of the rally.

Asian markets, too, reflect nervousness. The announcement of tariffs on India fuels fears that more trade restrictions could follow in the region. As a result, overall risk appetite weakens, and global investors shift toward safe-haven assets.

The Road Ahead for Investors

The sudden swing from Monday’s gains to Tuesday’s losses reflects the uncertain nature of current markets. Investors are left balancing optimism over domestic growth with fear of global trade disruptions. The immediate focus remains on the tariff issue and its implementation. Export-oriented sectors are bracing for a potential hit, while policymakers are expected to step in with responses to protect domestic interests.

From a technical and sentiment perspective, the Nifty must hold the 24,700 to 24,750 zone to avoid a deeper correction. If stability is achieved, a bounce toward the 25,100 to 25,200 resistance levels is possible. However, a break below support could trigger further selling, pushing indices into a sharper downtrend.

For the medium term, defensive sectors such as telecom, consumer goods, and healthcare may attract more investor interest. At the same time, sectors directly exposed to exports may continue to face pressure until clarity emerges on tariff impacts.

Final Thoughts

The Indian stock market today shows how quickly sentiment can change under the influence of global events. A day after technology stocks led a strong rally, the imposition of steep U.S. tariffs sparked a sharp sell-off across sectors. The Nifty trades near 24,794, while the Sensex hovers around 81,073, both down by nearly 0.7 percent. Mid-caps and small-caps also decline by close to 1 percent.

The nervousness reflects deep concerns about the trade environment and its impact on Indian companies. At the same time, selective buying and block deals show that opportunities still exist for investors willing to take calculated risks. Analysts continue to highlight defensive picks such as Sun Pharma and Bharti Airtel, while traders remain watchful of key support and resistance levels on the charts.

The coming sessions are likely to remain volatile. Much will depend on how quickly policymakers and corporate leaders respond to the tariff challenge. Until then, markets are expected to move in sync with global cues, with every headline on trade policy capable of swinging sentiment sharply.