Indian stock markets experienced a significant decline, marking the sharpest fall in a month on Thursday. This drop occurred as benchmark indices continued to slide for the fourth consecutive session, primarily due to escalating concerns regarding India–US trade tensions.
Investor confidence wavered following reports indicating that the US government under President Donald Trump might impose high tariffs, potentially reaching up to 500 per cent, on Indian products. The looming threat of such severe trade actions prompted extensive selling across various sectors, fostering a general aversion to risk in the market.
By the session’s closure, the Sensex concluded at 84,180.96, registering a decline of 780.18 points or 0.92 per cent. Similarly, the Nifty also ended lower at 25,876.85, down by 263.9 points or 1.01 per cent. Analysts emphasized the importance of a sustained close below 25,900, which could lead to further downside movements towards the 25,800–25,700 range, underscoring the necessity of surpassing the 26,000 mark to stabilize short-term sentiment.
In terms of stock performance, TCS, TechM, L&T, Reliance Industries, and Tata Steel were among the prominent losers on the Sensex 30-packs. Conversely, Eternal, ICICI Bank, Bajaj Finance, and BEL stood as the sole gainers amidst the market downturn.
The broader market witnessed intensified selling pressure, particularly impacting mid- and small-cap stocks, with the Nifty Midcap 100 and Nifty Smallcap 100 indices each plummeting nearly 2 per cent. Across various sectors, losses were widespread, with all indices closing in negative territory. Metal stocks faced significant declines, with the Nifty Metal index experiencing a drop exceeding 3 per cent, while the Nifty Oil and Gas index also faced notable pressure, falling approximately 2.8 per cent.
Furthermore, PSU banking and IT stocks emerged as major laggards, each declining by around 2 per cent. Analysts highlighted the prevailing cautious market sentiment as investors grappled with uncertainties surrounding global trade dynamics and the potential repercussions of heightened tariffs on India’s export-oriented sectors.
