Sensex, Nifty decline on global trends as fresh U.S. tariffs unnerve investors
Mumbai, Apr 9 (PTI): Benchmark stock indices Sensex and Nifty closed lower on Wednesday in line with losses in global markets after fresh US tariffs on China, even as the Reserve Bank cut policy rates for a second consecutive time as it sought to bolster the economy in the face of further pressure from damaging US tariffs.
The 30-share BSE Sensex dropped 379.93 points or 0.51 per cent to settle at 73,847.15. During the day, it slumped 554.02 points or 0.74 per cent to a low of 73,673.06.
The NSE Nifty declined 136.70 points or 0.61 per cent to 22,399.15. Intra-day, it tanked 182.6 points or 0.81 per cent to 22,353.25.
Mirroring weak trends in Asian equities, domestic key equity indices opened lower and remained in the negative territory throughout the session after the US imposed a fresh set of tariffs, including a whopping 104 per cent levy on Chinese imports.
"Global financial markets are witnessing renewed selling pressure following the enactment of reciprocal tariffs. A trade war is escalating global risk, with a rise in US bond yields prompting a sell-off in the world's safe treasury assets. In India, a cut in the repo rate, along with an accommodative policy stance, is taken as a constructive step.
"However, it has done little to uplift overall market sentiment, as the world is embracing recessionary risk," Vinod Nair, Head of Research, Geojit Investments Limited, said.
State Bank of India was the biggest loser among Sensex shares, dropping by 3.43 per cent amid a fall in banking shares. Tech Mahindra, Larsen & Toubro, Tata Steel, Sun Pharma, Infosys, HCL Tech, Axis Bank, Tata Consultancy Services and NTPC were also among laggards.
Nestle, Hindustan Unilever, Titan, Power Grid, UltraTech Cement and ITC were among the gainers.
The BSE smallcap gauge dropped 1.08 per cent and midcap index declined 0.73 per cent.
Among sectoral indices, BSE Focused IT tanked 2.19 per cent, while IT (2.01 per cent), realty (2 per cent), teck (1.57 per cent), metal (1.44 per cent) and industrials (1.42 per cent) also declined.
Auto, consumer durables and FMCG were the gainers.
In Asian markets, Tokyo's Nikkei 225 index and South Korea's Kospi settled lower while Shanghai SSE Composite index and Hong Kong's Hang Seng ended higher. Tokyo's Nikkei 225 index dropped nearly 4 per cent.
Markets in Europe were trading sharply lower. US markets ended significantly lower on Tuesday.
The Reserve Bank of India (RBI) cut interest rates on Wednesday for a second consecutive time and signalled more easing to come as it sought to bolster the economy in the face of further pressure from damaging US tariffs.
The Monetary Policy Committee (MPC), consisting of three central bank members and an equal number of external members, voted unanimously to cut the repurchase or repo rate by 25 basis points to 6 per cent. It had reduced rates by an equal measure in February -- the first cut since May 2020.
RBI changed its policy stance to "accommodative" from "neutral", indicating the possibility of more rate cuts in future, Governor Sanjay Malhotra said, announcing the MPC decisions.
The rate cut came on a day when the full 26 per cent additional tariffs on Indian goods exported to the US came into effect.
RBI also lowered its estimate for economic growth to 6.5 per cent for 2025-26 from 6.7 per cent earlier. The inflation projection was also lowered to 4 per cent from 4.2 per cent, keeping it within the target range of 2-6 per cent.
"Markets slipped after a brief rebound, losing over half a per cent as the choppy trend persisted. Sentiment took a hit following the announcement of fresh US tariffs on China, leading to a gap-down opening and a largely range-bound session thereafter. The outcome of the MPC meeting—where a 25 bps rate cut was announced along with a shift to an accommodative stance—failed to evoke any meaningful market reaction," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,994.24 crore on Tuesday, according to exchange data.
Global oil benchmark Brent crude dropped 4.23 per cent to USD 60.16 a barrel.
After Monday's drubbing, the BSE benchmark jumped 1,089.18 points or 1.49 per cent to settle at 74,227.08 on Tuesday. The Nifty surged 374.25 points or 1.69 per cent to 22,535.85.
Indian stock markets will remain closed on Thursday for Mahavir Jayanti.
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Intend to allow feeding of pigeons for 2 hours in morning at Dadar Kabutarkhana: BMC to HC
Mumbai, Aug 13 (PTI): The city civic body on Wednesday told the Bombay High Court it intends to allow controlled feeding of pigeons for two hours each morning at the Dadar Kabutarkhana subject to conditions.
A bench of Justices G S Kulkarni and Arif Doctor, however, stated that before granting any such permission, the Brihanmumbai Municipal Corporation (BMC) has to first issue a public notice inviting objections and then take a decision on allowing controlled feeding of the birds at the popular site in Dadar.
Since the BMC's decision to close kabutarkhanas (pigeon feeding spots) in the city and prohibit feeding of pigeons was in larger interest of public health, the sanctity of the same has to be maintained, the court noted, while hearing a bunch of petitions.
Last week, tarpaulin sheets were placed at the Dadar Kabutarkhana, a popular pigeon feeding site, by the BMC to prevent people from offering grains to the birds, a move which had led to protest during which the covers were forcibly removed by agitators.
Pursuant to this, a few individuals submitted an application to the BMC seeking interim arrangements for controlled feeding of the pigeons.
On Wednesday, BMC counsel Ram Apte told the court the civic body intends to permit controlled feeding of the birds from 6 am to 8 am subject to certain conditions.
The bench then questioned if the civic body had first invited objections to the application (seeking nod for controlled pigeon feeding) before taking its decision.
"You (BMC) cannot just allow feeding now once you have already taken a closure decision keeping public health in mind. You will have to take a well considered decision," the HC observed.
Once an application is received, you need to issue a notice and invite objections from people and then take a decision. Once you have taken a decision keeping people's health in mind then you need to maintain that sanctity, the bench affirmed.
The Maharashtra government on Wednesday also submitted a list of 11 names to be part of a committee that would carry out a scientific study on the issue of pigeon feeding at public places and its impact on human health.
The court said the government shall notify the committee by August 20.
Advocate General Birendra Saraf, appearing for the state government, said the committee would comprise officials from state public health and town planning departments and medical experts.
The court was hearing a bunch of petitions filed by people who regularly feed pigeons at kabutarkhanas. The petitioners have challenged the civic body's decision to ban such feedings and close down kabutarkhanas in the metropolis over potential health hazards from the exercise.
The high court had last month refused to grant any interim relief to the petitioners, but had asked the civic authorities not to demolish any heritage kabutarkhanas. The court had also said the BMC could take action as per law against those feeding pigeons at public places.
The Supreme Court had earlier this week refused to intervene in the HC order.
Senior counsel Anil Sakhare, appearing for the petitioners who have sought permission to offer grains to pigeons at the Dadar Kabutarkhana, said once the BMC takes a decision permitting controlled feeding, then they would move the HC seeking modification of the earlier order refusing interim relief.
