Investors’ wealth took a massive hit on Friday morning as the Indian stock market plunged sharply, wiping out Rs 7.46 lakh crore in market capitalization. The benchmark BSE Sensex tumbled over 1,000 points, tracking a bearish global trend fueled by fresh tariff threats and persistent foreign fund outflows.
The 30-share BSE Sensex nosedived 1,032.99 points or 1.38 percent to 73,579.44 in early trade. The sharp downturn triggered panic among investors, leading to a significant erosion in market wealth. The combined market capitalization of all BSE-listed firms plummeted to Rs 3,85,63,562.91 crore (USD 4.42 trillion), down by Rs 7,46,647.62 crore.
Key Losers and Gainers
Heavyweight stocks bore the brunt of the sell-off, with IT and banking stocks leading the losses:
Top Losers from the Sensex Pack:
– Tech Mahindra
– IndusInd Bank
– Maruti Suzuki
– HCL Technologies
– Tata Consultancy Services (TCS)
– Infosys
– Mahindra & Mahindra
– Titan
Top Gainers:
– Axis Bank
– HDFC Bank
– Reliance Industries
– Adani Ports
Why did Sensex crash?
Indian equities mirrored the deep cuts seen across Asian markets, with Seoul, Tokyo, Shanghai, and Hong Kong also experiencing sharp declines. The downward trend was fueled by concerns over fresh trade war fears and new tariff threats issued by US President Donald Trump.
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“The US market fell, closing at a five-month low, while US Treasury yields rose following President Donald Trump’s new tariff threats,” said Vikas Jain, Head of Research at Reliance Securities.
Trump’s Tariff Threats Shake Global Markets
US markets ended sharply lower on Thursday after Trump announced an additional 10 percent tariff on China, escalating trade tensions.
“Stock markets dislike uncertainty, and uncertainty has been on the rise ever since Trump was elected the US president,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The spate of tariff announcements by Trump has been impacting markets, and the latest announcement of additional tariffs on China confirms that the US will use trade negotiations to push for a settlement favorable to its economy. The reaction from China remains to be seen.”
Foreign Investors Pull Out Amid Volatility
Foreign institutional investors (FIIs) continued their selling spree, offloading equities worth Rs 556.56 crore on Thursday, according to exchange data. Since January, foreign portfolio investors (FPIs) have withdrawn over Rs 1 lakh crore from Indian markets, adding to the volatility.
Further compounding market uncertainty, global oil benchmark Brent crude dipped 0.51% to USD 73.66 per barrel, reflecting concerns over global economic slowdown amid trade tensions.
Market Outlook: More Volatility Ahead?
With global markets on edge and foreign investors pulling funds, analysts warn of continued volatility in the Indian stock market. The coming days will be crucial as investors closely watch how global economic and political developments unfold.
