Sensex and Nifty slump, investors poorer by Rs 7.46 lakh Cr
The 30-share BSE benchmark Sensex tanked 790.87 points to 73,821.56 in early trade. The NSE Nifty slumped 231.15 points to 22,313.90.
Benchmark indices Sensex and Nifty tanked in early trade on Friday mirroring deep cuts in global markets after the latest announcement of an additional 10% tariff on Chinese products rattled investors.
The 30-share BSE benchmark Sensex tanked 790.87 points to 73,821.56 in early trade. The NSE Nifty slumped 231.15 points to 22,313.90.
Investors' wealth tumbled by Rs 7.46 lakh crore in morning trade on Friday, in tandem with a sharp decline in the domestic equity market, with the benchmark Sensex plunging over 1,000 points following a bearish trend in global equities.
Fresh tariff threats that ignited global trade war fears and relentless foreign fund outflows dented investor sentiment.
Following the sharp decline in equities, the market capitalisation of BSE-listed firms eroded by Rs 7,46,647.62 crore to Rs 3,85,63,562.91 crore ($4.42 trillion) in morning trade.
From the Sensex pack, IndusInd Bank, Mahindra & Mahindra, Tech Mahindra, HCL Tech, Infosys, Tata Steel, Tata Motors and Maruti were the biggest laggards.
Axis Bank, HDFC Bank, Reliance Industries and Adani Ports were the gainers from the pack.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were trading with deep cuts.
"The US market fell, closing at a five-month low, while US Treasury yields rose following President Donald Trump's new tariff threats," Vikas Jain, Head of Research at Reliance Securities, said. US markets ended sharply lower on Thursday.
According to V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, stock markets dislike uncertainty, and uncertainty has been on the rise ever since Trump was elected the US president.
"Stock markets dislike uncertainty, and uncertainty has been on the rise ever since Trump was elected the US president. The spate of tariff announcements by Trump has been impacting markets and the latest announcement of an additional 10% tariff on China is a confirmation of the market view that Trump will use the initial months of his presidency to threaten countries with tariffs and then negotiate for a settlement favourable to the US.
"How China responds to the latest round of tariffs remains to be seen," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
Foreign institutional investors (FIIs) offloaded equities worth Rs 556.56 crore on Thursday, according to exchange data.
Global oil benchmark Brent crude dipped 0.47% to $73.69 a barrel.
"Asian equities fell Friday after heavy selling on Wall Street as traders grappled with underwhelming Nvidia Corp results, further details on US tariffs and mixed economic data," Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, said.
The BSE Sensex eked out marginal gains of 10.31 points or 0.01% to settle at 74,612.43 on Thursday. The Nifty slipped 2.50 points or 0.01% to 22,545.05, registering its seventh day of decline.
"Asian markets also experienced declines, with losses of up to 2.5%, after President Trump confirmed that 25% tariffs on Canada and Mexico are set to take effect on March 4, and that an additional 10% tariff on Chinese imports will be imposed," Vikas Jain, Head of Research, Reliance Securities, said.
Edited by Suman Singh
