FX.co ★ Sensex Falls Amid Global Trade Tensions

India's stock market experienced a decline of 362 points, or 0.5%, reaching 73,865 in the morning trading session on Wednesday. This downturn erased the gains recorded the day before and mirrored a decline on Wall Street from Tuesday, amid rising trade tensions following President Trump's confirmation of a 104% tariff on Chinese goods, taking effect today. The downturn impacted nearly all sectors, with the tech sector dropping by 2.8% and metals by 2.2%. Nonetheless, the fall was somewhat mitigated by the Reserve Bank of India's decision to cut interest rates by 25 basis points to 6%, despite the downward revision of the central bank's GDP forecast to 6.5% from 6.7% for the fiscal year 2025-26, and an inflation adjustment to 4% from 4.2%. The Nifty 50 index decreased by 0.6%, falling below 22,400, with significant declines in Tech Mahindra (-3.6%), Infosys (-3.0%), HCL Tech (-2.4%), Tata Steel (-2.3%), TCS (-1.6%), and Bajaj Finance (-1.5%).