New Delhi, Feb 3 (PTI) – Indian stock markets witnessed a sharp downturn on Monday, erasing investors' wealth by Rs 4.29 lakh crore amid escalating global trade war concerns triggered by US President Donald Trump's move to impose tariffs on key trading partners.
The market capitalisation of BSE-listed firms shrunk by Rs 4,29,823.69 crore, settling at Rs 4,19,54,829.60 crore (USD 4.82 trillion) as weak global cues weighed on equities.
Similarly, the NSE Nifty shed 121.10 points (0.52%) to close at 23,361.05.
"Nifty declined due to weak global cues as Donald Trump’s imposition of tariffs on Canada, Mexico, and China escalated trade war concerns," said Siddhartha Khemka, Head of Research, Wealth Management, at Motilal Oswal Financial Services Ltd.
On the other hand, Bajaj Finance surged over 5%, emerging as the top gainer. Mahindra & Mahindra, Bajaj Finserv, Bharti Airtel, and Maruti also managed to close in the green.
Market breadth remained negative, with 2,877 stocks declining, compared to 1,139 advancing, while 168 remained unchanged on the BSE.
Meanwhile, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 1,327.09 crore on Saturday, according to exchange data.
With escalating trade tensions and global market uncertainty, investors are expected to remain cautious in the near term.
The market capitalisation of BSE-listed firms shrunk by Rs 4,29,823.69 crore, settling at Rs 4,19,54,829.60 crore (USD 4.82 trillion) as weak global cues weighed on equities.
Key Market Indices Decline
The BSE Sensex, comprising 30 major stocks, fell by 319.22 points (0.41%) to close at 77,186.74, ending a five-day winning streak. During intraday trade, the benchmark index tumbled 749.87 points (0.96%) to touch a low of 76,756.09.Similarly, the NSE Nifty shed 121.10 points (0.52%) to close at 23,361.05.
"Nifty declined due to weak global cues as Donald Trump’s imposition of tariffs on Canada, Mexico, and China escalated trade war concerns," said Siddhartha Khemka, Head of Research, Wealth Management, at Motilal Oswal Financial Services Ltd.
Top Losers and Gainers
Among the Sensex constituents, major losers included Larsen & Toubro, Tata Motors, Hindustan Unilever, Asian Paints, ITC, Power Grid, NTPC, and Reliance Industries.On the other hand, Bajaj Finance surged over 5%, emerging as the top gainer. Mahindra & Mahindra, Bajaj Finserv, Bharti Airtel, and Maruti also managed to close in the green.
Sectoral Performance
The market downturn was broad-based, with sectoral indices witnessing steep losses:- Capital Goods fell 4.29%
- Industrials lost 3.79%
- Power declined 3.30%
- Utilities dropped 2.71%
- Oil & Gas tumbled 2.52%
- Metal slipped 1.99%
Broader Market Impact
The BSE Smallcap index tanked 1.77%, while the Midcap index declined 0.89%, reflecting widespread selling pressure.Market breadth remained negative, with 2,877 stocks declining, compared to 1,139 advancing, while 168 remained unchanged on the BSE.
Global Market Weakness Weighs on Sentiment
Asian markets, including Seoul, Tokyo, and Hong Kong, ended significantly lower, mirroring global risk-off sentiment. European markets also traded in deep red, while US markets closed lower on Friday, further adding to investor concerns.Meanwhile, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 1,327.09 crore on Saturday, according to exchange data.
With escalating trade tensions and global market uncertainty, investors are expected to remain cautious in the near term.
