Indian Stock Market Shows Resilience Amid US Tariff Pressure, Closes Slightly Lower

Mumbai: The Indian stock market ended slightly lower on Thursday after a highly volatile trading session, defying fears of a major sell-off following the US government's imposition of tariffs on India. Investor interest in FMCG stocks helped cushion the decline.

The Sensex closed at 81,185.58, down 296.28 points or 0.36%. It had opened significantly lower at 80,695.50, compared to the previous close of 81,481.86, but managed to recover during the day, briefly moving into positive territory and touching an intraday high of 81,803.27, fueled by gains in consumer sector stocks. However, the rally lost steam in the final hour due to monthly F&O expiry pressures.

The Nifty also ended in the red, slipping 86.70 points or 0.35%, to close at 24,768.35.

Analysts said the session underscored India's economic resilience, with selective buying indicating investor confidence in the domestic growth story.

Top losers from the Sensex pack included Tata Steel, Sun Pharma, NTPC, Reliance, Asian Paints, L&T, and Titan. In contrast, Hindustan Unilever, Eicher Motors, ITC, and Kotak Mahindra Bank managed to post gains.

The broader market also witnessed selling pressure:

• Nifty 100 fell 95 points (0.38%)

• Nifty Midcap 100 dropped 541 points (0.93%)

• Nifty Smallcap 100 declined 190 points (1.05%)

Amid the broader market weakness, Nifty FMCG stood out, rallying 791 points or 1.44%, driven primarily by Hindustan Unilever following its encouraging Q1 earnings.

Other sectoral indices closed in the red:

• Nifty Auto dropped 89 points

• Nifty IT fell 180 points

• Nifty Bank slipped 188 points

Despite the early slump, the market showed signs of recovery before closing with marginal losses, highlighting the strength of domestic-focused sectors.

"Investors shifted focus toward domestic, non-discretionary sectors like FMCG, attracted by their stable demand outlook, reasonable valuations, and reduced exposure to global tariff risks," analysts noted.

With inputs from IANS