Sensex Sinks 830 Points, Rs 9.5 Lakh Crore Wiped Out: Why Is Stock Market Falling Today? – News18
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Sensex, Nifty tumbled over 1%, eroding investor wealth by Rs 9.5 lakh crore, as Trump’s announcement of sweeping reciprocal tariffs
Stock Market Crash Today
Why Share Market Falling Today? Indian stock markets witnessed a sharp sell-off on Friday, tracking a global downturn triggered by renewed recession fears and sweeping tariff announcements by former US President Donald Trump.
The BSE Sensex plunged 836 points, or 1.09%, to 75,457, while the Nifty50 declined 304 points, or 1.3%, to 22,945 during morning trade.
The rout was broad-based, dragging all sectoral indices into the red, with the steepest losses seen in IT, metal, and pharmaceutical stocks.
The total market capitalisation of BSE-listed companies fell by Rs 9.47 lakh crore to Rs 403.86 lakh crore. Market breadth remained deeply negative, with 2,496 stocks declining, 834 advancing, and 116 remaining unchanged. Leading the declines were heavyweights like Tata Steel, Hindalco, Cipla, ONGC, and Tata Motors, which fell as much as 7%.
Broader markets were hit even harder, as the Nifty Midcap 100 dropped over 3%, while the Nifty Smallcap 100 fell 3.58% during intraday trade, erasing gains from the previous two sessions.
Trump’s Tariff Shock Sparks Global Trade War Fears
The sharp correction followed Trump’s announcement of a blanket 10% tariff on all US imports, with steeper duties for countries running large trade surpluses. India faces a 26% tariff under the new regime, while China, the EU, South Korea, Vietnam, Taiwan, and Japan also face higher levies ranging from 20% to 46%.
Experts warned that the tariffs could trigger retaliatory actions, escalating into a global trade war and deepening uncertainty in global markets.
“Markets are going through heightened uncertainty which is likely to last some time,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “A trade war has been triggered by Trump, and retaliatory tariffs from China, the EU, and others are on the cards. This will only prolong the confusion and volatility. A contraction in global trade and declining growth will inevitably have an impact on India as well,” he added.
Metals Under Pressure
Metal stocks faced heavy selling pressure, with Hindalco, Nalco, Vedanta, and JSW Steel sliding as much as 5%. The sharp decline was driven by fears that former US President Donald Trump’s sweeping tariff announcement could dent global demand for industrial commodities, sparking broader concerns over a slowdown in global manufacturing.
Pharma Stocks Slump on Tariff Fears
Pharmaceutical shares were among the worst hit after Trump hinted at upcoming tariffs that may specifically target the pharma sector. Stocks such as Aurobindo Pharma, Laurus Labs, IPCA Laboratories, and Lupin plunged up to 7%, erasing previous session gains.
Speaking to reporters aboard Air Force One, Trump said his administration was evaluating tariffs on pharmaceuticals, stating, “Pharma is going to be starting to come in at a level that you haven’t really seen before.” He further added that pharma was being treated as a separate category, with an official announcement expected soon. The remarks shocked investors, who had earlier expected pharma to be shielded from trade restrictions.
Heavyweights Drag Indices
The broader market selloff was exacerbated by declines in index heavyweights such as Reliance Industries, which contributed significantly to the day’s losses. Sectoral indices were deep in the red, with Nifty Pharma down 6.2%, Nifty Metal down 5.3%, and other segments like IT, Auto, Realty, and Oil & Gas registering 2–4% losses. The across-the-board decline highlighted widespread investor unease amid sector-specific headwinds and rising global risks.
Global Selloff Accelerates on Recession Fears
Recession fears surged globally after Wall Street logged its steepest single-day drop since 2020, with the S&P 500 losing $2.4 trillion in market capitalisation overnight. The panic extended to Asian markets, with Japan’s Nikkei plunging 3.4%, setting up its worst week since the COVID-19 crash.
A wave of risk aversion swept through global markets, as investors fled to safe-haven assets like U.S. Treasuries and gold, further underscoring the growing uncertainty surrounding the global economic outlook.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
