Zafar Iqbal
Global equity markets faced a sharp decline as fresh tariff threats from former US President Donald Trump spooked investors. The Indian stock market followed suit, with the benchmark BSE Sensex plummeting over 1,000 points, leading to a massive erosion of investors’ wealth. The market capitalization of BSE-listed companies dipped by Rs 7.46 lakh crore ($4.42 trillion) as concerns over an intensifying global trade war escalated.
Major Market Impact: Sensex Tumbles Over 1,000 Points
On Friday morning, the 30-share BSE Sensex plunged 1,032.99 points (1.38%), reaching 73,579.44. The sharp fall came as investors reacted negatively to Trump’s latest tariff threats and rising US Treasury yields.
From the Sensex pack, major losers included:
- Tech Mahindra
- IndusInd Bank
- Maruti Suzuki
- HCL Technologies
- Tata Consultancy Services (TCS)
- Infosys
- Mahindra & Mahindra
- Titan
However, a few stocks managed to resist the selloff, with Axis Bank, HDFC Bank, Reliance Industries, and Adani Ports emerging as gainers in the session.
Global Market Trends: Selloff Extends to Asian Markets
The negative sentiment was not limited to India, as major Asian markets also witnessed steep declines:
- Tokyo, Shanghai, Seoul, and Hong Kong all saw deep cuts in early trade.
- The US stock market closed at a five-month low after Trump’s aggressive trade rhetoric.
- US Treasury yields surged, adding to the market’s woes.
According to Vikas Jain, Head of Research at Reliance Securities, “The uncertainty in global markets has risen significantly, with Trump’s repeated tariff threats impacting investor confidence.”
Foreign Institutional Investors (FIIs) Pull Out Funds
One of the biggest concerns for the Indian markets remains the consistent outflow of foreign institutional investors (FIIs). On Thursday alone, FIIs pulled out Rs 556.56 crore, adding further pressure to the declining market.
Expert Opinions: How Will Markets React?
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, explained that stock markets tend to react negatively to uncertainty, and Trump’s tariff policies have been a major factor in the ongoing market volatility.
He further added:
“The latest tariff hikes confirm market fears that Trump will use the early months of his presidency to pressure global economies before negotiating a favorable trade deal for the US.”
A key point of concern remains China’s response to these tariff threats. If China retaliates, the global market could face further disruptions.
Oil Prices Drop as Trade War Concerns Escalate
The global oil benchmark Brent crude also saw a 0.51% decline, settling at $73.66 per barrel. This reflects growing concerns that a prolonged trade war could slow global economic growth and reduce demand for crude oil.
Stock Market Specification Table
| Market Index | Change | Current Level |
| BSE Sensex | -1,032.99 points (-1.38%) | 73,579.44 |
| NSE Nifty 50 | -350 points (-1.5%) | 22,250.00 |
| Market Capitalization (BSE) | -Rs 7.46 lakh crore | Rs 3,85,63,562.91 crore |
| Brent Crude | -0.51% | $73.66 per barrel |
| FII Outflow (Thursday) | -Rs 556.56 crore | – |
Conclusion: What’s Next for Investors?
The stock market’s sharp decline serves as a reminder of the volatility associated with geopolitical tensions and economic policies. While some experts believe that short-term fluctuations are inevitable, others caution that a prolonged trade war between the US and China could pose serious risks to global financial stability.Investors are advised to stay cautious, diversify portfolios, and keep a close eye on upcoming policy decisions from global leaders. As uncertainties persist, risk management will be crucial for navigating the evolving market landscape.
