Nifty falls over 1%, Sensex tumbles 750 points after Union Budget 2025: Here's why

Indian equity benchmarks- Sensex and Nifty in Monday's commercialized (February 3) fell sharply following the yearly Budget exercise. Nifty astatine the day's debased tanked arsenic overmuch arsenic 1.11 per cent to 23,222, portion the Sensex plummeted 0.97 per cent striking the day's debased of 76,756. Nevertheless, indices posted mild betterment aft crisp losses.

Meanwhile, broader markets besides continued to bleed, with the Nifty Smallcap 100 scale down astir 2 per cent astatine the past count.

Here are the apt reasons for the crisp resistance successful the Indian banal marketplace today:

Trump levies tariffs connected Mexico, Canada and China

Trump has levied a 25 per cent tariff on Canadian and Mexican imports arsenic good arsenic an further 10 per cent tax connected Chinese goods and the aforesaid would travel into unit from Tuesday (February 4). However, Canadian vigor faces a little 10 per cent tariff.

The US president clarified that the determination was successful effect to his concerns astir amerciable migration and cause trafficking.

"Markets whitethorn spot a spread down opening owed to weakness successful US and Asian indices aft US President Donald Trump announced tariffs connected Canada, Mexico and Chinese goods, which could effect successful retaliatory measures from these countries connected US imports," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

The sentimental interaction whitethorn substance pessimism successful home markets connected fears that akin US measures could beryllium imposed connected Indian imports arsenic mentioned during his pre-election campaigns, helium added.

Across-the-board sell-off

All the sectors barring user durables traded with heavy cuts, led by the metallic and vigor pack. Nifty Metal scale was down implicit 2 per cent aft the US President imposed tariffs connected China, Canada and Mexico, perchance triggering a commercialized warfare and hampering planetary economical growth.

Rupee slumps to caller debased against greenback

Tracking the planetary currency marketplace trend, the home portion registered a grounds debased of 87.29 successful aboriginal commercialized today. This autumn was triggered connected the backmost of the trade warfare betwixt the US and its trade partners similar Canada, Mexico and China.

Traders amid beardown request for the dollar expect further downside successful the home currency. 

Spike successful dollar scale to trigger FII selling

The US dollar scale (DXY) past traded with gains of implicit 1 per cent astatine 109.53 arsenic Trump's tariff impositions spurred the request for safe-haven asset- dollar. 

But the spike successful the dollar scale to supra 109.6 volition trigger much selling by FIIs putting the marketplace nether pressure, said 

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services