Stock Market: Equity markets witnessed a sharp sell-off on Friday, with benchmark indices falling over one percent. The drop came after US President Donald Trump announced reciprocal tariffs, sparking fears of a global trade war. These concerns caused global sentiment to turn sour, leading to widespread market volatility. Both the Sensex and Nifty saw significant declines, reflecting the growing anxiety over potential trade disruptions. Investors reacted cautiously to the trade tensions, causing a wave of selling in key sectors. As a result, market sentiment weakened, and analysts are closely watching the situation for further developments.
Stock Market Indices Sensex And Nifty Suffer Significant Losses
Sensex plunged 820.15 points or 1.07% to an intraday low of 75,475.21, while the broader NSE Nifty tumbled 313.95 points or 1.35%, reaching 22,936.15.
Markets faced heavy selling pressure, particularly in IT, pharma, and metal stocks. This was triggered by global weakness after US President Donald Trump announced reciprocal tariffs on about 60 countries, including India.
Top Companies included:
- Tata Motors
- Tata Steel
- Larsen & Toubro
- Maruti Suzuki India
- IndusInd Bank
- Infosys
- HCL Technologies
- NTPC
- Tech Mahindra
- Sun Pharmaceutical Industries
- Adani Ports
The market sell-off reflected growing concerns over the impact of these tariffs, with investors reacting to the potential economic disruption caused by the escalating trade tensions between the US and other nations. The global trade climate remains uncertain, influencing market performance.
Here Are The Key Factors
- Fears of Global Trade War: US reciprocal tariffs spark fears of a full-blown trade war. China and Canada have vowed countermeasures, heightening market uncertainty.
“Markets are going through heightened uncertainty… A global trade war has been triggered by the US,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. - Negative Global Cues: US stocks suffered their worst decline since 2020, with the S&P 500 down 4.9% and the Nasdaq 100 down 5.5%. Nearly $2.5 trillion in market value was wiped out.
Asian markets followed suit, with Tokyo’s Nikkei down 3% and Seoul’s KOSPI down nearly 2%. - Sectoral Drag: All 13 NSE sectoral indices closed in the red.
- Pharma stocks dropped after Trump hinted at potential tariffs.
- IT shares declined as US tech stocks weakened.
- Metal shares were hit by concerns over trade barriers.
- Relentless FII Selling: Foreign investors continued to offload equities, selling Rs 2,806 crore worth of shares on Thursday. Domestic investors bought shares worth Rs 221.47 crore.
- Investors Await Key Announcements: Investors await US Federal Reserve Chair Jerome Powell’s speech on the US economy and policy outlook, and the RBI MPC’s decision on the repo rate.