Benchmark stock indices on Friday crashed 2% tracking a global market meltdown precipitated by the tariff war unleashed by U.S. President Donald Trump.
The S&P BSE Sensex plunged 1,414 points, or 1.90%, to 73,198 led by fall in IT, banking and auto stocks.
The top Sensex losers included Tech Mahindra (6.19%), IndusInd Bank (5.48%), M&M (5.21%), Bharti Airtel (4.86%), Titan (4.57%) and Infosys (4.32%).
Mirroring the same sentiment, the Nifty-50 index of NSE slumped 420 points, or 1.86%, to 22,125 points.
Devarsh Vakil, Head of Prime Research, HDFC Securities, said Nifty fell for the eighth consecutive session, falling 1.86%, marking its steepest single-session decline since October 3, 2024, in percentage terms.
“The index recorded a weekly decline of 2.94% and a monthly drop of 5.89%, registering its fifth straight month of losses. The Nifty has now fallen almost 16% from its all-time high of 26,277,” he said.
“Investor sentiment deteriorated due to escalating concerns about a global trade war. President Trump announced 25% tariffs on European Union imports, confirmed that duties on Canadian and Mexican imports will take effect on March 4 —earlier than the previously indicated April 2 date — and declared an additional 10% tariff on Chinese goods,” he added.
Cash market volumes on the NSE increased by 63% compared with the previous day and declining stocks outnumbered advancing ones for the fifth consecutive session, with the BSE advance-decline ratio at 0.24 — the lowest since February 14, 2025.
Both mid-cap and small-cap indices extended their underperformance for the fifth consecutive day. The Nifty Midcap 100 index fell 2.5% to its lowest level since March 27, 2024, while the Nifty Smallcap 100 index plummeted 3.01% to its lowest close since March 19, 2024, Mr. Vakil said.
All sectoral indices closed in negative territory, with Nifty IT, Auto, Media, and PSU Banks being the major losers. Nifty IT crashed over 4% to a 7-month low amid U.S. growth concerns. “Uncertainty often weighs more than the actual event, and the market is currently grappling with concerns over potential trade wars,” said Ajit Mishra, senior vice-president, Research, Religare Broking Ltd. “Additionally, persistent FII selling continues to add pressure,” he added.
Published – February 28, 2025 07:59 pm IST
