Black Monday: 775 stocks hit their 52-week lows, which included Bajaj Auto, Cipla, Cummins India, Dr Reddys Laboratories, Hero MotoCorp, Hindalco Industries, NACL Industries, Infosys, Oil and Natural Gas Corporation (ONGC), Reliance Industries (RIL), Tata Motors, Tube Investments of India, and Titan Company. In contrast, 59 stocks touched 52-week highs, with notable mentions NACL Industries, and Atal Realtech.

The domestic benchmark indices, Nifty 50 and Sensex, experienced their most significant decline in the last 10 months on Monday as a selloff spurred by tariffs escalated, causing investors to offload riskier assets amid rising concerns of a global recession.

The Nifty 50 dropped by 3.24% to 22,161.1, while the Sensex decreased by 2.95% to 73,137.9. Both indices recorded their largest single-day fall since June 4, 2024.

Other international markets saw declines, with the MSCI Asia ex-Japan index falling by 8.3%. Japan’s Nikkei 225 decreased by 7.8%, while stocks in Europe experienced significant drops, with Germany’s Dax declining by 5.3% and the British FTSE losing 4.1%.

President Donald Trump’s recently implemented tariffs are “bigger than anticipated” and are expected to affect inflation and economic growth, Federal Reserve Chair Jerome Powell mentioned on Friday, indicating a vague forecast for the US economy.

Vinod Nair, the Head of Research at Geojit Investments Limited, mentioned that the markets dropped as concerns over elevated US tariffs and retaliatory actions from other nations could ignite a trade war. Sectors such as IT and metals have lagged behind the overall market due to the threat of rising inflation coupled with slower economic growth, which could lead to a potential recession in the US. While the overall effect on India may be less severe compared to other nations, investors are encouraged to proceed with caution during this turmoil.

Nifty 50 Outlook

According to Rupak De, Senior Technical Analyst at LKP Securities, the index has fallen back into a descending channel on the daily timeframe as bearish sentiment rose amid escalating trade tensions between countries. Nifty 50 slipped by more than 1,000 points at one point but recovered to close 418 points off the low.

“For the day, the index found support around the multiple support zones near 21,700. In the short term, the trend remains weak. On the higher side, resistance is placed at 22,350 and 22,550. On the lower side, support is seen at 21,900, below which the decline is likely to resume,” added De.

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