Stock market closing bell: The domestic stock market closed on Monday (3 February) with a decline in the trading session of the first week. The global markets declined after US President Donald Trump’s decision to increase tariff duty on imports from Canada, Mexico and China. It also affected the domestic markets. The fall in the rupee against the dollar also affected investors’ sentiments.
BSE Sensex, with thirty -share BSE Sensex, opened by about 500 points at 77,063 on Monday (3 February). During the trading, it fell by more than 900 points to 76,756. Finally the Sensex closed down with a decline of 319.22 or 0.41%.
Similarly, the Nifty 50 (Nifty50) of the National Stock Exchange (NIFTY50) also slipped below 23 thousand. Finally, while recovering some recovery, the Nifty slipped 121 points or 0.52% to close at 23,361.
The reason for the decline in the stock market on Monday (February 3)?
1. Trump has imposed a 25 percent fee on goods and services coming from Canada and Mexico. Trump has also stained 10 percent duty on imported goods from China. These fees will be effective from Tuesday. India’s eyes are stunned by Trump’s steps.
2. Indian currency has also fallen drastically against the dollar. The Indian rupee fell by 67 paise to a record low of 87.29 per dollar on Monday (February 3).
3. Apart from this, selling in heavyweight stocks like L&T, Reliance Industries, ITC, HDFC Bank and Hindustan Unilever also pulled the market downwards.
Dr. VK Vijaykumar, Chief Investment Strategist of Geojit Financial Services, said that despite the best budget, the market will be under pressure of increased global uncertainty due to Trump’s tariff and ‘early stages of tariff’. At the moment, India is not affected by this. Therefore, the impact on the Indian market will be less. But by reaching the dollar index above 109.6, the FII will start selling more. This will bring the market under pressure. ”
Rupee crossed 87 against dollar
This has led to a huge decline in Indian currency amidst the possibility of Trade War after the US President Donald Trump signed an order to impose fees on Canada, Mexico and China. The Indian rupee fell by 67 paise to a record low of 87.29 per dollar on Monday (February 3).
5 lakh crore rupees of investors drowned
Due to the major decline in the market on Monday, the wealth of investors drowned around Rs 5 lakh crore. The total market cap (MCAP) of companies listed on BSE declined to Rs 419,83,537 crore. It was Rs 424,80,380 crore on Saturday (01 February).
How was the reaction of the market on the budget day?
The benchmark equity index was closed flat after the Finance Minister Nirmala Sitharaman presented the budget 2025 in the last trading session. The Sensex rose 0.01 per cent to close at 77,505.96. The Nifty 50 fell 0.11 per cent to close at 23,482.15.
The reaction of the market on budget 2025 was largely neutral. Despite the relief in income tax, the market did not get any significant boost. Apart from this, some rationalization in custom duty structure, import duty on telecom and IT components and duty on vehicle imports were cut. Other measures related to Agri, Rural Development and Renewable Energy were seen positively.