Bloodbath On Bourses Over Trump 2.0 Tariffs

Further, the weak recovery in the ongoing Q3 earnings, coupled with a depreciating Re, are likely to prompt further outflows from FIIs - Vinod Nair, Head (Research), Geojit Financial Services

Investors lose Rs 7.5 lakh cr

The market capitalisation (mcap) of BSE-listed companies eroded by Rs7,52,520.34 crore to Rs4,24,07,205.81 crore (Rs424.07 lakh cr or $4.90 trillion).

Mumbai: Benchmark Sensex tanked 1,235 points to settle at more than seven-month low due to an across-the-board selloff triggered by global tariff war worries and persistent foreign fund outflows, making investors poorer by over Rs 7 lakh crore.

The 30-share BSE Sensex plummeted 1,235.08 points or 1.60 per cent to settle at 75,838.36 dragged by losses in ICICI Bank and Reliance Industries. During the day, the BSE benchmark plummeted 1,431.57 points or 1.85 per cent to hit an intraday low of 75,641.87. The broader NSE Nifty plunged 320.10 points or 1.37 per cent to close at 23,024.65, a level not seen since June 6, 2024. In the intraday trade, the NSE Nifty plunged 367.9 points or 1.57 per cent to 22,976.85. The market capitalisation (mcap) of BSE-listed companies eroded by Rs7,52,520.34 crore to Rs4,24,07,205.81 crore or $4.90 trillion.

Vinod Nair, Head (Research), Geojit Financial Services, said: “Domestic markets experienced a significant decline today, with heightened volatility, followed by Trump’s announcement of trade tariffs on neighbouring countries on his inauguration day, adding uncertainty into global markets. The weak recovery in the ongoing Q3 earnings, coupled with a depreciating INR, are likely to prompt further outflows from FIIs.”

The BSE midcap gauge declined 2 per cent and smallcap index slumped 1.94 per cent.

Prashanth Tapse, Senior V-P (Research), Mehta Equities, adds: “Markets were on a cautious mode in the past few sessions, but witnessed frenzied selling on Tuesday as investors now fear that Trump’s inaugural speech to safeguard America’s interest could hurt economic prospects of many countries, including India, going ahead. While foreign investors continue to offload domestic shares at will, any further rise in US bond yields could trigger massive selling.”

Among BSE sectoral indices, Realty nosedived the most by 4.22 per cent, followed by Consumer Durables (3.99 per cent), Consumer Discretionary by (2.90 per cent), Services (2.86 per cent), Power (2.63 per cent), Telecommunication (2.52 per cent) and Utilities (2.35 per cent) were among the laggards. As many as 2,788 stocks declined while 1,187 advanced and 113 remained unchanged on the BSE.

Among Sensex shares, Zomato fell the most by 10.92 per cent due to weak Q3 earnings. NTPC, Adani Ports, ICICI Bank, State Bank of India, Reliance Industries, Mahindra & Mahindra, Bajaj Finance, Tech Mahindra and Axis Bank were among the major laggards. UltraTech Cement and HCL Technologies were the only gainers.