Indian Stock Markets Plunge Amid US Tariff Threats
On Monday, Indian equity markets experienced a significant downturn as the Sensex declined by over 700 points to reach 80,688, and the Nifty Index dropped more than 200 points to 24,538. This sharp fall coincided with renewed tariff threats issued by the United States, significantly impacting investor sentiment during the ongoing earnings season.
Impact of US Tariff Hike Announcement
The market slump followed US President Donald Trump’s recent declaration of plans to increase steel and aluminium tariffs from the existing 25% to 50%. This escalation was justified by accusations that China had violated prior agreements to roll back tariffs and trade restrictions. The announcement triggered global market jitters, particularly in Asian markets, with indices in South Korea, Japan, Shanghai, and Hong Kong also registering losses.
Market Reaction and Sectoral Performance
Foreign Institutional Investors (FIIs) notably intensified selling pressure, offloading shares worth approximately ₹6,450 crore on Friday, further unsettling the markets. Among Sensex constituents, significant losses were observed in major stocks such as:
- HDFC Bank
- HCL Technologies
- Infosys
- Tech Mahindra
- Tata Steel
Conversely, a few companies bucked the trend with gains, including Hindustan Unilever, Adani Ports, and Mahindra & Mahindra.
Expert Analysis and Outlook
Market analysts highlight that although the prevailing trade tensions and tariff concerns create uncertainty, robust domestic corporate earnings during the current season may offer some resilience. The global volatility underscores the sensitivity of Indian markets to geopolitical developments, even as local fundamentals continue to hold weight.
