SENSEX, NIFTY50 plunge nearly 1%: Top 4 factors behind the market fall on Monday

The equity benchmark indices on Monday, February 10, tumbled nearly 0.80% during the intraday amid weak global cues and foreign fund outflows.

At 12:25 PM, the S&P BSE SENSEX was trading at 77,221.20, plunging 638.99 points, or 0.82%, while the NSE's NIFTY50 index was trading at 23,353.95, falling 206 points, or 0.87%.

In the latest trade escalation, US President Donald Trump said he will announce 25% tariffs on all aluminium and steel products entering the country on Monday.

Trump also said that he would declare reciprocal tariffs on trading partners that tax imports from the US later this week, The Guardian reported. "If they charge us, we charge them," he said.

Trump's plan to charge 25% tariffs on steel and aluminium imports is likely to have a major impact on Canada and Mexico, which are the biggest steel trading partners of the US.

"Any steel coming into the United States is going to have a 25% tariff," POTUS said while speaking to media on Sunday.

The exodus of FPIs from the Indian equity markets continued unabated, as they withdrew over ₹7,300 crore (about 840 million) in the first week of this month due to global trade tensions, with the US imposing tariffs on countries such as Canada, Mexico, and China.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹470.39 crore on Friday, according to exchange data.

This came following an outflow of ₹78,027 crore in the entire January. Before that, they invested ₹15,446 crore in December, data with the depositories showed.

The US indices ended lower on Friday as investors grappled with fresh tariff threats from the Trump administration and rising inflation expectations.

The Dow Jones Industrial Average declined 444.23 points, or 0.99%, to 44,303.40, while the S&P 500 dropped 57.58 points, or 0.95%, to 6,025.99. The Nasdaq Composite closed 268.59 points, or 1.36%, lower at 19,523.40.

Asian markets on Monday were trading, tracking a fall in US stock futures, ahead of key economic data and the likelihood of more tariffs. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.3%.

Japan’s benchmark Nikkei 225 declined 0.10%, while South Korea’s Kospi inched higher by 0.15%. Hong Kong’s Hang Seng index was trading higher by 1.39%. China’s Shanghai Composite was trading at 3316.12, rising 0.38%.

The rupee depreciated 45 paise to hit a record low of 87.95 against the US dollar in early trade on Monday weighed down by the strength of the American currency in the overseas market and a negative trend in domestic equities.

Forex traders said the dollar index was quoted at 108. At the interbank foreign exchange, the rupee opened at 87.94 and slipped further to an all-time low of 87.95 against the greenback in initial deals, a fall of 45 paise from its previous close.

Brent crude, the global oil benchmark, rose 0.63% to $75.13 per barrel in futures trade.