The Sensex fell over 1,400 points, closing at 73,198.10, while the Nifty dropped 420 points to 22,124.70, following global market turmoil after US President Trump’s announcement of an additional 10% tariff on China. This decline marks a 14.86% drop in the Sensex from its peak on September 27, 2024, and a 15.8% decrease in the Nifty. Experts noted that rising foreign fund outflows and market uncertainty have negatively impacted investor sentiment. Trump also stated that new tariffs on imports from Canada and Mexico would take effect soon. China vowed to respond with necessary countermeasures.
New Delhi:
The Sensex dropped by more than 1,400 points, while the Nifty fell by 420 points, mirroring the situation in global markets shaken by US President Donald Trump’s announcement of an additional 10% tariff on China.
At the close of trading on Friday, the benchmark Sensex finished at 73,198.10, down 1,414.33 points or 1.9%, while the Nifty ended at 22,124.70, declining by 420.35 points or 1.86%.
The BSE benchmark index is now down 12,780.15 points, or 14.86%, from its peak of 85,978.25 reached on September 27, 2024. Similarly, Nifty has decreased by 4,152.65 points, or 15.8%, from its all-time high of 26,277.35 on the same date.
Experts indicated that rising outflows of foreign funds have further dampened investor confidence.
“Stock markets are averse to uncertainty, and this uncertainty has intensified since Trump’s election as President of the US. The series of tariff announcements made by Trump has influenced the markets, and the latest announcement of an additional 10% tariff on China reinforces the consensus that Trump will leverage the early stages of his presidency to impose tariffs on countries before negotiating terms favorable to the US,” stated VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, as reported by news agency PTI.
“It remains to be seen how China will respond to the latest tariffs,” he remarked.
On Thursday, Trump indicated that the 25% duties on imports from Canada and Mexico would take effect on March 4, coinciding with the end of a month-long pause, rather than on April 2 as previously suggested. “China will similarly incur an additional 10% tariff on that date,” he noted.
This 10% tariff on Chinese imports will be in addition to a previously imposed levy of the same rate announced earlier this month.
China responded on Friday, stating that it would take “all necessary countermeasures” and warned that the decision to impose the additional tariff would significantly affect dialogues.
Among the Sensex components, Tech Mahindra fell over 6%, followed by IndusInd Bank with a decline of 5%. Shares of Mahindra & Mahindra, Bharti Airtel, Infosys, Tata Motors, Titan, Tata Consultancy Services, Nestle, and Maruti also witnessed drops.
US markets closed sharply lower on Thursday, and several Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, also experienced significant declines in their indices.
(With inputs from PTI)