Nifty, Sensex Snap 2-Day Rally; India VIX Jumps Nearly 9%

Market Update at 4:15 PM: On Monday, October 13, Indian equity benchmark indices ended lower, snapping a two-day winning streak, as fresh tariff threats from the United States against China impacted market sentiment ahead of India's retail inflation data release. India’s fear index, India VIX, jumped nearly 9 per cent to 11 points.

The Nifty 50 slipped 58 points, or 0.23 per cent, to settle at 25,227.35, while the Sensex declined 173.77 points, or 0.21 per cent, ending at 82,327.05. 

On Friday, US President Donald Trump announced plans to significantly increase tariffs on China in response to Beijing’s restrictions on critical mineral exports. The escalation in trade tensions between the world’s two largest economies could drive up inflation in the US and potentially delay any interest rate cuts by the Federal Reserve. Higher US rates may negatively impact emerging market equities, including India, as higher yields attract global investors.

Among sectors, five out of 11 closed in positive territory. The Nifty IT index, which earns significant revenue from the US, declined by 0.78 per cent. Meanwhile, broader markets ended on a mixed note, with the Nifty Midcap and Nifty Smallcap indices showing varied performance.

Tata Capital made a muted debut, listing at a 1.3 per cent premium. Waaree Renewable Technologies share price jumped 8.57 per cent after its September quarter profit surged. In contrast, BLS International fell over 11 per cent after the Ministry of External Affairs temporarily restricted the company from participating in new tenders for two years.

The Nifty PSU Bank index rose 0.24 per cent, hitting a fresh 52-week high, with seven out of 12 constituents ending in positive territory. On the other hand, the Nifty FMCG index declined by 0.90 per cent, marking its largest Intraday fall in October so far.

The key contributors to the Nifty 50 were Bharti Airtel (+8.97 points), Bajaj Finance (+8.79 points), and Axis Bank (+5.93 points). Stocks that weighed on the index included Reliance Industries (-8.41 points), HDFC Bank (-12.65 points), and Infosys (-17.67 points).

The Nifty Midcap 100 ended up 0.11 per cent, while the Nifty Smallcap 100 closed down 0.17 per cent. Out of 3,201 stocks traded on the NSE, 1,118 advanced, 1,974 declined, and 109 remained unchanged. A total of 87 stocks touched their 52-week highs, 85 hit their 52-week lows, 87 were locked in Upper Circuits, and 81 in Lower Circuits.

Market Update at 12:35 PM: Indian stock markets opened gap-down on Monday amid broad-based selling pressure across sectors.

At 12:00 PM, the BSE Sensex was trading at 82,171, down 329 points or 0.4 per cent, while the Nifty50 declined 87.6 points or 0.35 per cent to quote at 25,197. The decline in domestic equities followed weakness in Asian markets after US President Donald Trump warned of “restricted” tariffs on China late Friday. Although his stance softened by Sunday, investors remain cautious about the potential for a renewed trade war between the two largest economies.

In the broader markets, the Nifty MidCap index fell 0.57 per cent, while the Nifty SmallCap index slipped 0.65 per cent. Market volatility rose sharply, with India VIX surging 12 per cent, reflecting increased investor nervousness.

All the sectoral indices were trading in the red. The Nifty Realty index dropped over 1 per cent, leading the sectoral losses, followed by the Nifty Metal and Nifty IT indices, which were down 0.8 per cent each.

Market Update at 10:30 AM: India's benchmark shares opened lower on Monday, tracking losses across Asia after the United States issued fresh tariff threats against China. Investors also awaited the market debut of Tata Capital, the country’s largest IPO of 2025 so far.

The Nifty 50 fell 0.34 per cent to 25,201.15, while the BSE Sensex shed 0.32 per cent to 82,257.37 as of 9:21 a.m. IST. All 16 major sectors logged losses at the open. The broader, more domestically focused Small-Caps and Mid-Caps fell 0.45 per cent and 0.3 per cent, respectively.

Other Asian markets declined by 2 per cent on the day. On Friday, U.S. President Donald Trump promised to sharply increase tariffs on China in response to Beijing’s restrictions on critical mineral exports.

Rising trade tensions between the world's two largest economies could push up inflation in the US and force the Federal Reserve to delay interest rate cuts. High U.S. rates make dollar assets and Treasury yields more attractive for global investors, which can weigh on emerging market equities such as India.

Pre-Market Update at 7:45 AM: On Monday, October 13, equity benchmark indices Sensex and Nifty 50 are expected to open lower following weakness in global markets after US President Donald Trump announced an additional 100 per cent tariff on imports from China. At 7:15 AM, the GIFT Nifty was trading at 25,329, down 72 points.

This week, investors will closely watch key market triggers including the US-China tariff war, India’s inflation data, Q2 earnings, developments over the US government shutdown, IPO activity, foreign fund flows, and major global and domestic macroeconomic updates. In early trade, Asian markets traded lower on Monday, tracking Wall Street’s sharp losses last week. The S&P 500 and Nasdaq recorded their largest single-day percentage drops since April 10.

HCL Technologies, Anand Rathi Wealth, Just Dial, Indo Thai Securities, and Stallion India Fluorochemicals will announce their Q2 FY26 earnings today. On Friday, October 10, Foreign Institutional Investors (FIIs) were net buyers of equities worth Rs 459.20 crore, marking their fourth consecutive day of buying. Domestic Institutional Investors (DIIs) were also net buyers, purchasing equities worth Rs 1,707.83 crore — their 33rd straight session of net buying.

On October 10, Indian markets ended higher, extending weekly gains. The Nifty 50 rose 0.41 per cent to 25,285.35, and the Sensex gained 0.40 per cent to 82,500.82. Both indices advanced 1.57 per cent for the week, supported by strong FII inflows and earnings optimism. Sectorally, 9 of 11 indices closed positive, led by Realty, while IT and Metals slipped marginally. Broader markets outperformed, with Nifty Midcap and Smallcap indices ending on a firm note.

Wall Street ended sharply lower on Friday after President Trump’s announcement of a 100 per cent tariff on Chinese imports and new export controls on critical US-developed software. The move came after Beijing imposed further restrictions on rare earth exports. The Dow Jones Industrial Average fell 878.82 points (1.90 per cent) to 45,479.60, the S&P 500 declined 182.60 points (2.71 per cent) to 6,552.51, and the Nasdaq Composite dropped 820.20 points (3.56 per cent) to 22,204.43. The US government shutdown entered its tenth day with no resolution, delaying key economic data releases.

Gold prices climbed to around USD 4,040 per ounce in early Asian trade as investors sought safe-haven assets amid rising trade tensions. Spot gold rose 0.5 per cent to USD 4,038.36 per ounce, while MCX Gold futures closed at Rs 1,21,364 per 10 gm, up Rs 871 or 0.72 per cent. The US dollar index recovered slightly to 99.002, while crude oil prices rebounded from recent lows. Brent crude rose 1 per cent to USD 63.6 per barrel, and WTI crude gained 1 per cent to USD 59.7 per barrel. 

For today, RBL Bank and Sammaan Capital will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.