The Indian stock market saw a steep fall today after a short phase of stability. The Nifty has fallen below the 22,300 level, while the Sensex has seen a steep drop of 940 points. Nifty Bank has also fallen by over 500 points. This steep fall comes at a time when former U.S. President Donald Trump declared the imposition of tariffs on Mexico, Canada, and China. Also, global markets have witnessed a steep fall, adding to the bearish mood in Indian markets.
Now, the Sensex is quoting at 73,670 after losing 940 points, while Nifty has lost 270 points at 22,774. Nifty Bank is at 48,250. Excluding HDFC Bank and Reliance Industries, all of the top 30 stocks on the BSE are in the minus zone. IndusInd Bank has lost the maximum, down by 4.50%.
What Caused the Market Decline?
Donald Trump has stated that from March 4, tariffs on Canada and Mexico will become effective. Trump has also stated intentions to raise tariffs on Chinese imports. Post this statement, U.S. technology company Nvidia recorded an overnight fall of 8.5%, pulling the Nasdaq down. The decline has impacted Asian markets, as there has been a heavy sell-off in the Indian market.
Besides global signals, Indian markets are also facing huge selling pressure. Shares of Mahindra & Mahindra, IndusInd Bank, and other biggies have taken a huge hit. The selling has spilled over to mid-cap and small-cap stocks too.
Top 10 Stocks Under Heavy Losses
– Chambal Fertilizers: Down by around 7%
– Redington: Fell by 6.8%
– Credit Access: Dropped by 6%
– Patanjali Foods: Down by 10%
– IREDA: Down by 7%
– Hexacom: Down by 5%
– Info Edge: Down by 6%
– Tech Mahindra: Down by 5%
– IndusInd Bank: Down by 4.50%
– Mahindra & Mahindra: Down by about 5%
Investors Lose ₹7 Lakh Crore in Market Capitalization
The steep drop in the Sensex, which fell more than 900 points, has resulted in a huge loss of investor wealth. The overall market capitalization of BSE-listed companies has declined by ₹6.72 lakh crore, decreasing from ₹393.10 lakh crore at the last closing to ₹386.38 lakh crore today.
Sensex and Nifty Face Steep Declines
At the opening on Friday, Sensex fell 790.87 points to 73,821.56 and Nifty by 231.15 points to 22,313.90. In a matter of minutes, the Sensex fell over 900 points.
Because of soft world trends, there has been continuous selling pressure in local markets, resulting in a sharp fall. The Sensex was down by 940.77 points (1.26%) at 73,703.80 by 9:50 AM, while the Nifty was down by 272.96 points (1.21%), trading at 22,272.10.
Of the 30 Sensex stocks, IndusInd Bank, Mahindra & Mahindra, Tech Mahindra, HCL Tech, Infosys, Tata Steel, Tata Motors, and Maruti have been hit hardest. Reliance Industries and HDFC Bank have, however, held their own in positive numbers.
Global Markets in Freefall
After a sharp fall on Wall Street because of doubts about artificial intelligence stocks, Asian markets have also reported heavy losses. Japan, Hong Kong, and South Korea’s share indices have dipped over 2% each. Moreover, Trump’s move to apply a 25% tariff on Mexican and Canadian imports and to raise Chinese tariffs to 20% has generated investors’ uncertainty.
In Tokyo, the Nikkei 225 index plummeted by 3.4% to 36,939.89, largely due to a sell-off in technology stocks. Semiconductor equipment manufacturer Advantest saw a sharp drop of 9.4%, while Disco Corp fell by 11.1% and Tokyo Electron declined by 5.3%.
Hong Kong’s Hang Seng Index fell 2.3% to 23,175.49, and Shanghai Composite fell 0.9% to 3,358.28. South Korea’s Kospi fell 3.2% to 2,538.07, and Australia’s S&P/ASX 200 fell 1.1% to 8,174.10.
The S&P 500 fell 1.6% to 5,861.57 on Thursday, while the Dow Jones Industrial Average fell 0.4% to 43,239.50. The Nasdaq Composite lost the most, falling 2.8% to 18,544.42.
Rupee Weakens Amid Market Turmoil
The Indian rupee opened lower on Friday, declining by 19 paise to 87.37 against the U.S. dollar as the dollar strengthened and domestic markets showed a negative outlook.
Forex market players have been linked to rupee’s loss of value because of uncertainty on the U.S. tariff plan. On the interbank forex market, the rupee traded at 87.32 per dollar and declined further to 87.37 compared to 87.18 where it was at the closing period.
Meanwhile, the greenback strength indicator known as dollar index, that compares the U.S. dollar’s value relative to six important currencies, grew 0.10% to 107.35.
Outlook for Investors
The latest crash has caused investor sentiment to erode as key world developments continue to instill uncertainty in financial markets. With concerns about trade tariffs increasing, geopolitics remaining unclear, and global sell-off among tech stocks, investors are best advised to proceed with caution and revisit their strategies. Long-term investors are said to be patient and not rush to sell panic-stricken, but short-term speculators may need to take keen interest in world signals before deciding.