Mkts plunge 1% as US tariff fears weigh
BSE benchmark Sensex nosedives 824 pts to 7-mth low as IT, oil, gas shares tank
image for illustrative purpose
Mumbai: Benchmarks Sensex tanked 824 points to settle at more than seven-month low on Monday following heavy selling in IT and oil & gas shares amid weak global trends and increased uncertainty over US trade policy.
The 30-share BSE barometer plunged by 824.29 points or 1.08 per cent to close at 75,366.17 with 23 of its constituents ending lower and seven with gains. During the day, the barometer plummeted 922.87 points or 1.2 per cent to a low of 75,267.59. The broader 50-share Nifty dropped by 263.05 points or 1.14 per cent to close at 22,829.15, tanking below the 23,000-level for the first time since June 6, 2024. In the intraday session, the NSE Nifty declined 305.3 points or 1.32 per cent to 22,786.90. The market capitalisation (mcap) of BSE-listed companies slumped by Rs9,28,229.09 crore to Rs4,10,23,624.90 or ($4.75 trn).
“Broad-based selling across sectors plummeted the Indian market amidst tepid earnings and weak sentiments across the globe. The weak sentiments were further exacerbated as the US trade confrontation continued, like with Colombia this time. Heightened volatility is here to stay this week ahead the upcoming events risk like the FOMC meeting, expiry week, and Union Budget,” Vinod Nair, Head (Research), Geojit Financial Services.
Overall market breadth was negative as 3,522 stocks declined while 593 advanced and 119 remained unchanged on the BSE.
“A combination of factors like weak US and European market cues, monthly F&O expiry later this week, persistent FII fund outflows, and muted third quarter corporate earnings so far have continued to push investors in reducing their equity exposure.,” added Prashanth Tapse, Sr V-P (Research), Mehta Equities Ltd.
IT, telecom, utilities, power, consumer durables, oil and gas and healthcare sector shares were major losers as investor sentiment was hit by uncertainty over US trade policy. US President Donald Trump announced 25 per cent tariffs on Colombia after the latter blocked planes carrying deported migrants. The US reversed the decision after Colombia, a close US ally, agreed to take back deported migrants.
