Indian equity benchmarks continued to show a sluggish trend in morning session, as both Sensex and Nifty were trading below their crucial 82,550 and 25,500 marks, respectively, dragged down by a sharp sell-off in IT stocks amid rising fears of AI-led disruption. Besides, rising crude oil prices and renewed concerns over global trade after US President Donald Trump's latest tariff remarks also weighed on investors' sentiments. Traders overlooked Reserve Bank of India Governor Sanjay Malhotra’s statement that the new CPI inflation series based on 2024 prices will better reflect Indian households' consumption patterns and reduce volatility. Sector wise, power stocks remained in watch as Comptroller and Auditor General of India K Sanjay Murthy stated that the power sector is the backbone of India's economy, and a reliable power supply is essential for the country's growth. On the global front, Asian markets were trading mixed as investors assessed U.S. trade uncertainty and monitored Middle East developments. As global trade deals stall, the White House is set to impose a 15 percent tariff through Section 122 of the Trade Act of 1974.

The BSE Sensex is currently trading at 82528.16, down by 766.50 points or 0.92% after trading in a range of 82451.69 and 83079.51. There were 6 stocks advancing against 24 stocks declining on the index.

The few gaining sectoral indices on the BSE were Metal up by 0.32% and Bankex up by 0.03%, while IT down by 3.27%, TECK down by 3.07%, Telecom down by 1.76%, Realty down by 1.19% and Consumer Discretionary down by 0.90% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 0.21%, Hindustan Unilever up by 0.18%, SBI up by 0.13%, Kotak Mahindra Bank up by 0.12% and NTPC up by 0.11%. On the flip side, HCL Technologies down by 3.88%, Eternal down by 3.64%, Infosys down by 3.50%, Tech Mahindra down by 3.36% and TCS down by 3.07% were the top losers.

Meanwhile, the government has reduced the duty benefits under the export support scheme, the Remission of Duties and Taxes on Exported Products (RoDTEP), by half, prompting the exporting community to seek a reconsideration of the decision. The RoDTEP Scheme, introduced in 2021, provides for a refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods, and are not being reimbursed under any other mechanism at the Centre, state or local level.

With immediate effect, the Directorate General of Foreign Trade (DGFT) said the applicable RoDTEP rates shall be limited to 50 per cent of the existing rates. Refunds under the scheme range from 0.3 per cent to 3.9 per cent. Besides, talking about the decision, Federation of Indian Export Organisations (FIEO) President S C Ralhan said the reduction in rates and the 50 per cent cut in value caps come at a particularly challenging when Indian exports are already facing significant global headwinds, including slowing demand, increasing uncertainty and rising protectionism. 

He stated ‘We request the government to reconsider the decision.’ According to government data, the country's exports rose marginally by 0.61 per cent to $36.56 billion in January, while trade deficit widened to a three-month high of $34.68 billion.

The CNX Nifty is currently trading at 25488.50, down by 224.50 points or 0.87% after trading in a range of 25474.35 and 25641.80. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Nestle up by 0.50%, JSW Steel up by 0.31%, Hindalco up by 0.30%, Apollo Hospital up by 0.22% and SBI up by 0.19%. On the flip side, HCL Technologies down by 3.91%, Eternal down by 3.58%, Infosys down by 3.52%, Tech Mahindra down by 3.43% and Bharti Airtel down by 3.14% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 511.3 points or 0.9% to 57,337.00, Taiwan Weighted added 853.83 points or 2.53% to 34,627.09, Shanghai Composite strengthened 43.82 points or 1.07% to 4,125.89 and KOSPI increased 115.26 points or 1.97% to 5,961.35.

On the flip side, Hang Seng declined 544.91 points or 2.05% to 26,537.00, Straits Times fell 34.33 points or 0.68% to 5,007.00 and Jakarta Composite plunged 18.92 points or 0.23% to 8,377.16.