Indian shares fell on Wednesday, mirroring a global market rout triggered by U.S. President Donald Trump's tariffs, as a widely expected rate cut and dovish shift by the Reserve Bank of India did little to lift sentiment.
The NSE Nifty 50 (.NSEI), opens new tab dropped 0.61% to 22,399.15, while the BSE Sensex (.BSESN), opens new tab declined 0.51% to 73,847.15.
U.S. President Donald Trump's "reciprocal" tariffs took effect earlier in the day, impacting markets all over the world.
"What began as trade tensions has now escalated into a full-fledged global economic conflict, dragging global markets lower," said Nikhil Oswal, founder and chief investment officer at Finterest Capital.
However, he said the pressure on Indian equities will likely be less severe compared to other Asian peers due to India's lower share in global export markets.
Meanwhile, the RBI cut its key repo rate for the second consecutive time this year to counter mounting growth pressures, and changed its monetary policy stance from "neutral" to "accommodative".
"The move signals a strategic push by the central bank to stimulate demand and investment," said Abhishek Jaiswal, fund manager at Finavenue.
However, the already priced-in cut failed to help markets, which saw broad-based selling.
Eleven of the 13 major sectors declined while the smallcap (.NIFSMCP100), opens new tab and midcap stocks (.NIFMDCP100), opens new tab lost 0.9% and 0.5%, respectively.
IT stocks, which derive a significant portion of their revenue from the U.S., dropped 2.2%.
The pharma index (.NIPHARM), opens new tab fell 2% after Trump signalled "major" tariffs on pharmaceutical imports.
Bucking the broader trend, consumer stocks(.NIFTYFMCG), opens new tab gained 1.8% after the central bank lowered its inflation forecast for fiscal year 2026, noting improvement in urban consumption.
The MSCI Asia ex-Japan (.MIAPJ0000PUS), opens new tab dropped 1.3% and Europe's STOXX 50 (.STOXX), opens new tab shedding 2.7%.
The dollar fell broadly, while the benchmark U.S. 10-year note yield was up 13 basis points on the day.
