After starting the day on a negative note, the benchmarks dragged further as the session progressed and ended the day on a weak note.

Benchmark equity indices, the BSE Sensex and NSE Nifty50 ended the week's first trading session lower, dragged down by selling across the counters.

At the closing bell, the BSE Sensex stood lower by 548 points (down 0.7%).

Meanwhile, the NSE Nifty closed lower by 178 points (down 0.8%).

Bharti Airtel, HCL Tech,and Britannia were the top gainers today.

Trent, ONGC, and Titan on the other hand, were among the top losers today.

The GIFT Nifty ended at 23,433 down by 153 points.

The BSE Mid Cap ended 2.1% lower and the BSE Small Cap index ended 2.3% lower.

Sectoral indices are trading on a negative note with stocks in the realty sector, metal sector, and power sector witnessing selling pressure.

The rupee is trading at 86.49 against the US$.

Gold prices for the latest contract on MCX are trading 1% higher at Rs 85,784 per 10 grams.

Meanwhile, silver prices are trading 0.7% higher at Rs 95,950 per 1 kg.

Here are five reasons why Indian Markets are falling today.

#1 Trump Tariff Hits Metals

US President Donald Trump intensified trade tensions by announcing plans to impose fresh tariffs on all steel and aluminum imports, along with additional reciprocal duties.

Following this, the BSE Metal Index tumbled nearly 3% after Trump's February 9 statement, in which he vowed to implement a 25% duty on steel and aluminum imports, adding to existing levies. All 15 stocks in the index saw declines, with Tata Steel, SAIL, and Vedanta falling between 3% and 4%.

#2 Broader Markets Under Pressure

The broader markets faced significant losses, underperforming the benchmarks as both the BSE Midcap and BSE Smallcap indices dropped over 2%.

#3 FPI Sell-Off Intensifies

Foreign investors continued their exit, selling Rs 10,179 crore worth of Indian equities in February so far, as a stronger U.S. dollar and rising Treasury yields reduced the appeal of emerging markets.

#4 Rupee Hits New Low

The rupee plunged to a record low on February 10, slipping 49 paise to open at 87.92 per dollar, mirroring a broader decline in Asian currencies. Trump's fresh tariff threats have only added to the pressure.

#5 Sectoral Sell-Off

All 13 major sectoral indices ended in the red, with metal stocks taking the biggest hit. The sell-off was widespread, with financials, oil & gas, and metals leading the decline.
 

Nifty Pharma Index Drops 2%

In news from the pharma sector, worries over potential US import tariffs dragged down stocks on 10 February.

Concerns stemmed from US President Trump's indication that a 25% tariff on steel and aluminium could extend to other sectors, including pharmaceuticals, oil, and semiconductors.

With the US being a key market for Indian drugmakers, the possibility of higher tariffs has made investors wary.

As a result, major pharma stocks like Dr Reddy's, Cipla, Lupin, Aurobindo Pharma, and Sun Pharma declined by 1-3%, while companies such as Alkem Labs, Ipca Labs, Laurus Labs, and Wockhardt faced steeper losses, falling 3-6%. The broader Nifty Pharma index slipped nearly 2% amid the sector-wide decline.

Although Trump's broader trade policy remains uncertain, the recent wave of tariffs over the past month has heightened concerns that these threats may turn into concrete action.

If Trump went ahead and imposed tariffs on pharma imports in the US, it could be a huge setback for Indian drugmakers.

Tariffs would increase the cost of exporting drugs to the US, potentially reducing margins for Indian pharmaceutical companies like Sun Pharma, Dr Reddy's, and Cipla, that have substantial exposure in the US generics market.
 

MTNL Shares Jump 9%

Moving on to news from the telecom sector, shares of Mahanagar Telephone Nigam Limited (MTNL) jumped 9% to Rs 57.5 in morning trade on 10 February, following reports that the Union Cabinet has approved a Rs 60 bn financial package to accelerate the 4G expansion of Bharat Sanchar Nigam Limited (BSNL) and its subsidiary, MTNL.

The funding aims to enhance the network infrastructure of both state-owned telecom companies. MTNL's stock has now climbed 13% over the past three sessions and is up 23% in the last month.

As part of the plan, nearly one lakh 4G sites will be installed to improve connectivity and strengthen network services, though a further Rs 60 bn may be required for full implementation.

Since 2019, the government has committed Rs 3.22 trillion (tn) to BSNL and MTNL through three revival packages, including support for 4G expansion. These efforts helped BSNL-MTNL achieve operational profitability in FY21.

However, BSNL, which manages MTNL's operations in Delhi and Mumbai, continues to face challenges in retaining customers due to its limited 4G presence.

Shipping Corporation of India Shares Plunge 7%

Moving on to news from the shipping sector, shares of Shipping Corporation of India (SCI) plunged as much as 7.3% to Rs 177 in morning trade on February 10 after the public sector company's third-quarter earnings left investors disappointed.

As India's largest shipping firm under the Ministry of Ports, Shipping, and Waterways, the steep decline in its performance weighed on market sentiment.

SCI reported a sharp 44% drop in net profit to Rs 755 m, down from Rs 1.3 billion in the same quarter last year.

Revenue from operations also slipped 2% to Rs 13.2 bn compared to Rs 13.4 bn in the previous year, adding to the concerns.

Meanwhile, the Union Budget 2025 brought a ray of hope for the broader shipbuilding industry.

Finance Minister Nirmala Sitharaman announced the revival of the Shipbuilding Financial Assistance Policy, a ten-year exemption on basic customs duty for shipbuilding and shipbreaking firms, and the creation of a Rs 250 bn Maritime Development Fund.

These measures aim to strengthen the domestic shipbuilding sector by facilitating industry clusters and boosting competitiveness.

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