MUMBAI: Benchmark indices Sensex and Nifty plunged nearly 2 per cent on Friday, tracking a global sell-off after fresh tariff threats from former US President Donald Trump rattled investors.
The 30-share BSE Sensex nosedived 1,414.33 points or 1.90 per cent to close at 73,198.10, after hitting an intraday low of 73,141.27, down 1,471.16 points or 1.97 per cent. The NSE Nifty slumped 420.35 points or 1.86 per cent to 22,124.70, marking its eighth consecutive session of decline.
Since its all-time high of 85,978.25 on September 27 last year, the Sensex has shed 12,780.15 points or 14.86 per cent. The Nifty has lost 4,152.65 points or 15.80 per cent from its lifetime peak of 26,277.35 hit on the same day.
Analysts attributed the steep fall to relentless foreign fund outflows and growing concerns over the US economic outlook.
Among Sensex constituents, Tech Mahindra dropped over 6 per cent, while IndusInd Bank declined more than 5 per cent. Mahindra & Mahindra, Bharti Airtel, Infosys, Tata Motors, Titan, Tata Consultancy Services, Nestle, and Maruti were also among the major losers. HDFC Bank was the only gainer in the pack.
Asian markets closed with steep losses, with Seoul, Tokyo, Shanghai, and Hong Kong all in the red. European markets were mostly lower, while US indices ended sharply down on Thursday.
Domestic market
“The domestic market suffered a sharp decline amid heightened bearish sentiment, largely due to weak global cues. The biggest trigger was the fear of a 25 per cent tariff on US imports from Canada and Mexico set to take effect next week, along with an additional 10 per cent duty on Chinese goods,” said Vinod Nair, Head of Research at Geojit Financial Services.
Adding to investor concerns, speculation over potential tariffs on the European Union has further fuelled uncertainty, he noted.
“As markets navigate this turbulence, all eyes are on India’s Q3 GDP data, which could offer crucial insights into the economic recovery path and influence future market direction,” Nair added.
Foreign institutional investors (FIIs) offloaded equities worth Rs556.56 crore on Thursday, exchange data showed.
Global oil benchmark Brent crude fell 0.69 per cent to $73.53 per barrel.
On Thursday, the BSE Sensex had barely managed to stay afloat, gaining 10.31 points or 0.01 per cent to settle at 74,612.43, while the Nifty slipped 2.50 points or 0.01 per cent to 22,545.05, extending its losing streak to seven sessions.
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