By Vivek Kumar M and Bharath Rajeswaran
(Reuters) -Indian shares ended lower on Monday, with the broader market seeing sharper cuts as concerns over U.S. tariffs and the ongoing market decline kept investors on edge.
The Nifty 50 closed 0.41% lower at 22,460.3, while the Sensex fell 0.29% to 74,115.17.
The key indexes rose nearly 2% last week on likely bargain buying after the ongoing market sell-off wiped out $1 trillion from India’s market value and made valuations in largecaps more attractive for investors.
“Large cap indices are approaching a point which warrants moderate equity allocation, diluting the conservative stance that valuations suggested for a long while,” DSP Asset Managers said.
The midcap and smallcap indexes slipped 1.5% and 2%, respectively.
For broader markets, the valuation comfort is still missing but is on its way, the asset manager added.
Mid- and smallcaps are trading about 20.5% and 23% below their record high levels, while the benchmark Nifty is 14.5% below its all-time high.
India VIX, the volatility gauge, jumped the most since February 28 to 13.99, indicating that uncertainty will remain high in the near term.
India is working to secure a bilateral trade deal with the U.S. after President Donald Trump called out the country’s high tariffs on several occasions.
Higher tariffs can directly hit India’s domestic growth, while also fuelling inflationary pressures and hindering growth in the world’s largest economy, besides weighing on foreign inflows into emerging markets such as India.
Most Asian markets declined on the day, with the MSCI Asia ex Japan slipping 1%. [MKTS/GLOB]
Among individual stocks, IndusInd Bank shed around 4% as the private lender received a shorter-than-expected extension to its CEO’s tenure from the Reserve Bank of India.
Reliance Industries RELI.NS fell about 1% to be the biggest drag on benchmarks, on likely pullback after a 4% jump last week.
Trent dropped 4.1% as Kotak Equities flagged revenue pressure from densely located new Westside and Zudio stores.
(Reporting by Vivek Kumar M and Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and Mrigank Dhaniwala)
