MUMBAI: Indian stock markets crash on Friday erased over Rs11 lakh crore in investor wealth as a broad-based selloff rattled Dalal Street. Sensex tumbled 1,041 points to 75,254, while Nifty sank 385 points to 22,864.
The markets crash followed a sharp overnight decline on Wall Street, triggered by US President Donald Trump’s fresh tariffs on trading partners, reigniting fears of a full-blown trade war and global recession.
Investor wealth shrank to Rs402.29 lakh crore, down from Rs413.33 lakh crore in the previous session. The spillover from the markets crash in the US led to a steep decline in Indian indices, mirroring the selloff in global equities.
On Thursday, Trump’s “Liberation Day” announcements sent shockwaves through Wall Street, with US benchmark indices logging their worst single-day percentage declines since 2020.
IT stocks extended their losses for a second consecutive session, with the BSE IT index plummeting 1,005 points to 33,288 from its previous close of 34,293. The Nifty IT index also dropped 1,098 points, or 3.16 per cent, to 33,658.
Analysts believe that Trump’s new tariffs on trading partners could hurt US economic growth, thereby weakening demand for services from Indian IT companies. Emkay Global, in its latest report, warned of further downside for Indian equities in the first quarter of FY26.
Recession fears
“While the direct impact of these tariffs on India may be limited, the potential US recession could pose a three per cent risk to FY26 Nifty earnings per share. The resultant derating could drag Nifty down to 21,500,” the brokerage noted.
The broader market also suffered, with the BSE midcap index sinking 1,027 points to 40,769 and the small-cap index tumbling 1,281 points to 46,212. Among Sensex stocks, Tata Motors, Tata Steel, Sun Pharma, L&T, Reliance Industries, and IndusInd Bank were the biggest losers, shedding up to five per cent. Out of 30 Sensex stocks, 22 traded in the red.
Market breadth reflected the bearish sentiment, with 2,630 stocks declining out of the 3,722 traded on the BSE. Meanwhile, 913 stocks managed to gain, while 179 remained unchanged. Around 148 stocks hit their lower circuits, while 202 stocks reached their upper circuits. Despite the weakness, 44 stocks scaled their 52-week highs, while 55 touched 52-week lows.
In the US, markets suffered heavy losses overnight, with the Nasdaq Composite Index plunging 1,050.44 points, or 5.97 per cent, to 16,550. The S&P 500 index slid 274 points to 5,396, while the Dow Jones Industrial Average crashed 1,679 points, or four per cent, to 40,545.
The S&P 500 alone lost $2.4 trillion in market value, while the Nasdaq recorded its steepest daily drop since March 2020. In the previous session, Sensex had closed 322 points lower at 76,295, while Nifty ended 82 points down at 23,250.
