BENGALURU: India’s equity benchmarks ended marginally lower on Monday, led by IT and metals stocks, as global trade concerns outweighed optimism from stronger-than-expected domestic growth data.
The Nifty 50 dipped 0.14% to 24,716.6, while the BSE Sensex fell 0.09% to 81,373.75. On Friday, US President Donald Trump threatened to double tariffs on imported steel and aluminium to 50% from June 4, reigniting global trade concerns.
Metals and IT companies ended 0.7% lower and were the top sectoral losers by percentage. Rising trade tensions could weigh on the US economy and tech spending and delay rate cuts by the Federal Reserve amid worries of tariff-driven inflation.
Metal stocks dropped as much as 1.3% during the session but pared losses after India’s steel minister estimated only a minor impact from Trump’s tariff announcement on steel.
The losses in both sectors outweighed gains fuelled by India’s economy surging 7.4% in January to March, above a Reuters forecast of growth of 6.7%.
Despite upbeat economic growth, global trade turbulence has weighed on market sentiment, limiting any scope for a meaningful upside, said Ajit Mishra, senior vice president of research at Religare Broking. Investors await the Reserve bank of India’s policy decision on June 6, where the central bank is expected to cut interest rates by 25 basis points.
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