That Sinking Feeling: Stocks swoon as tariff reality hits investors hard

Synopsis

NSE Nifty fell 1.5%, oregon 345.65 points, to decorativeness astatine 22,904.45. BSE Sensex dropped 1.2%, oregon 930.67 points, to 75,364.69. The slump wiped retired ₹10 lakh crore successful marketplace worth Friday.

Mumbai: Indian equities were swamped by a question of selling that swept riskier assets globally connected Friday, tracking Wall Street's overnight slump-the worst since 2020-in effect to US President Donald Trump's reciprocal tariff regime that has led to fears astir a global downturn.

NSE Nifty fell 1.5%, oregon 345.65 points, to decorativeness astatine 22,904.45. BSE Sensex dropped 1.2%, oregon 930.67 points, to 75,364.69. The slump wiped retired ₹10 lakh crore successful marketplace worth Friday.

US markets were down 4-5% astatine 23:50 IST Friday aft China announced retaliatory tariffs and export curbs connected captious materials. "The large selloff successful the US has triggered a planetary risk-off sentiment," said Mahesh Patil, CIO, Aditya Birla Sun Life AMC. "The probability of US recession is adding to planetary maturation concerns... bilateral negotiations could pb to easing of immoderate of the tariffs successful the coming weeks."

Agencies

‘More Short-term Turmoil Expected’
US Treasury yields dropped beneath 4% connected Friday for the archetypal clip since October arsenic fears of a recession sparked a unreserved to safety. Uncertainty implicit the interaction of the US-China commercialized warfare sent lipid prices tumbling. Brent crude futures were down 6.8% to $65.35 a tube “The planetary markets are successful a funk due to the fact that of the crisp autumn successful the US markets, downgrades connected economical forecasts and with China and the European Union expected to retaliate,” said Aashish Somaiyaa, CEO, WhiteOak Capital AMC.

In Asia, China, Hong Kong, Taiwan and Indonesia markets were shut. Japan dropped astir 2.8%, Thailand plunged 3.6% and Vietnam declined 1.8%, portion South Korea was down 0.9%.

“Despite being comparatively amended positioned than its Asian peers similar China, Taiwan and Bangladesh, Indian markets person declined due to the fact that the tariff warfare is heating up with retaliatory moves by different nations,” said Patil. The driblet successful the Sensex and Nifty was cushioned by the resilience successful bluish spot lenders specified arsenic Bajaj Finance, HDFC Bank and ICICI Bank, which roseate betwixt 0.5% and 1.5%. The Bank Nifty scale ended 0.2% lower. The broader market, however, lacked immoderate specified enactment with the Nifty Mid-cap 150 scale and the Small-cap 250 scale tumbling by 2.9% and 3.3%, respectively. Out of the 4,076 shares traded connected the BSE, 1,029 advanced, portion 2923 declined.

The Nifty Metal Index slumped 6.6% connected Friday, portion the Pharma and IT indices witnessed a autumn of astir 4% each. The Nifty Realty Index tumbled 3.6%, and the lipid & gas, healthcare, user durables and car indices declined astir 2-4%. Foreign portfolio investors (FPIs) sold shares worthy a nett Rs 3,484 crore connected Friday. Their home counterparts besides sold shares worthy Rs 1,720 crore. In April, overseas investors person sold equities worthy implicit Rs 14,500 crore.

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