The Indian stock market witnessed a sharp downturn on Friday as the benchmark BSE Sensex tumbled 1,032.99 points or 1.38% to 73,579.44 in morning trade. The heavy selloff led to a staggering erosion of Rs 7.46 lakh crore in investor wealth, following a similar downtrend in global equities.
The primary trigger for this massive slump was renewed tariff threats from former U.S. President Donald Trump, raising fears of a fresh global trade war. Persistent foreign fund outflows further dented investor sentiment.
Market bloodbath: Tech Mahindra, IndusInd Bank among biggest losers
Several heavyweight stocks bore the brunt of the market meltdown. Tech Mahindra, IndusInd Bank, Maruti, HCL Tech, Tata Consultancy Services, Infosys, Mahindra & Mahindra, and Titan were the top losers on the Sensex.
However, a few stocks managed to withstand the storm, with Axis Bank, HDFC Bank, Reliance Industries, and Adani Ports emerging as the only gainers.
Global turmoil adds to the pressure
Asian markets mirrored the downtrend, with Seoul, Tokyo, Shanghai, and Hong Kong all trading deep in the red. Meanwhile, the U.S. market slumped to a five-month low as Treasury yields surged in response to Trump’s tariff announcement.
Vikas Jain, Head of Research at Reliance Securities, noted that “the U.S. market fell sharply, with a significant rise in Treasury yields, following Trump’s fresh tariff threats.”
Uncertainty rattles investors as FIIs pull out Rs 556 crore
Market analysts pointed out that investors have been wary of uncertainty, which has only intensified with Trump’s return to power. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that Trump’s strategy has often involved threatening tariffs early in his presidency before negotiating favorable trade deals for the U.S.
Adding to the concerns, foreign institutional investors (FIIs) pulled out Rs 556.56 crore from Indian equities on Thursday, as per exchange data.
Crude oil prices slide as global concerns mount
The impact of global economic jitters extended to the commodity market, with Brent crude slipping 0.51% to $73.66 per barrel.
As markets brace for further volatility, investors will be closely monitoring China’s response to the latest round of U.S. tariffs, which could determine the trajectory of the ongoing global selloff.