Indian stock markets fell sharply in the early stages on Monday as US President Trump imposed trade tariffs on Colombia. This weakened the morale of investors. The Nifty 50 index fell 152.05 points or 0.66 per cent to 22,940.15, while the BSE Sensex fell 490.03 points or 0.64 per cent to 75,700.43. The market has been in turmoil after US President Donald Trump announced a 25 percent tariff on Colombian imports. The move came after Colombia refused to allow U.S. military planes carrying exiled Colombian migrants to land in the country.
Banking and market expert Ajay Bagga said, "Indian futures are weak which is pointing to a negative start. However, any resolution of the Colombian tariff issue would be emotionally positive later. Markets will be on the rise due to the weekend deadline of February 1. Expectations of any rally ahead of the Union Budget 2025 in India due to the approach of Trump tariffs on Mexico and Canada have been largely negated by the global pressure on emerging markets due to the magnomics results.
Sectoral indices in India showed a bad mood, with Nifty Media, Metal and Consumer Durables being the biggest losers. Nifty IT also fell 0.92 per cent. Out of the Nifty 50 stocks, only four were trading in the green, while the rest were in the red. Meanwhile, major companies such as Coal India, Indian Oil Corporation, Tata Steel, Bajaj Housing Finance, Canara Bank, Adani Wilmar and Petronet LNG are set to announce their third quarter earnings later today, keeping investors upbeat. The 23,000 level on Nifty acts as an important support. A break below this level could head towards 22,670, which is in line with the 38.2 percent Fibonacci retracement of the rally between 16,828 and 26,277. Currently, Nifty is trading within a specific price range around support. A break below the support could identify a greater downside momentum or a Nifty bounce back from support. A key event that can push the market up or down can be a deciding factor in the direction of the Budget Nifty 50.
Colombia has decided to use its presidential plane to transport migrants from Honduras. However, market sentiment appears to have suffered. Experts pointed out that the "weaponization" of tariffs and visa access in the current US-Colombia standoff has sent a shock wave to global markets. While U.S.-Columbia trade volumes are relatively small, the implications for other U.S. trading partners, including Mexico, Canada, Europe and China, have been volatile.