Investors’ wealth took a significant hit on Friday, plummeting by Rs 7.46 lakh crore in morning trade, as the domestic equity market saw a sharp decline. The benchmark Sensex tumbled over 1,000 points, dropping 1.38% to 73,579.44, following a bearish global market trend. The downturn was triggered by fresh trade war fears amid new tariff threats, coupled with persistent foreign fund outflows that dampened investor sentiment.
The market capitalization of BSE-listed companies sank by Rs 7,46,647.62 crore to Rs 3.85 lakh crore (approximately USD 4.42 trillion) in early trading. Among the biggest losers were stocks like Tech Mahindra, IndusInd Bank, Maruti, HCL Technologies, Tata Consultancy Services, Infosys, Mahindra & Mahindra, and Titan. On the flip side, Axis Bank, HDFC Bank, Reliance Industries, and Adani Ports saw modest gains.
The global equity markets also faced widespread losses, with major Asian indices in Seoul, Tokyo, Shanghai, and Hong Kong all trading in the red. The US market had closed at a five-month low the previous day, weighed down by rising US Treasury yields and President Donald Trump’s new tariff threats, which further fueled global trade war concerns.
Vikas Jain, Head of Research at Reliance Securities, noted that the uncertainty surrounding the trade policies, especially with the US-China trade tensions, had unnerved investors. “The market is reacting to the rising risks of a prolonged trade conflict, and this latest 10% tariff threat on China has escalated concerns,” he said.
Foreign institutional investors (FIIs) contributed to the selling pressure, offloading equities worth Rs 556.56 crore on Thursday, according to exchange data. In addition, global oil prices took a hit, with Brent crude falling 0.51% to USD 73.66 a barrel.
As markets brace for further volatility, the continued unpredictability surrounding global trade policies remains a key factor influencing investor sentiment, casting a shadow on market stability in the short term.
