Mumbai, Feb 28: Indian benchmark indices tumbled nearly 2% on Friday, tracking deep losses in global markets as investor sentiment soured following the announcement of an additional 10% tariff on Chinese products.
The BSE Sensex plummeted 1,414.33 points (1.90%), settling at 73,198.10, after touching an intraday low of 73,141.27. Similarly, the NSE Nifty plunged 420.35 points (1.86%) to close at 22,124.70, marking its eighth consecutive session of decline.
Market Meltdown Continues
Since its record high of 85,978.25 on September 27 last year, the Sensex has shed 12,780.15 points (14.86%), while the Nifty has dropped 4,152.65 points (15.80%) from its peak of 26,277.35 on the same date.Persistent foreign fund outflows and uncertainty surrounding the US economic outlook have exacerbated investor concerns, leading to the ongoing downturn, analysts said.
Top Losers and Sectoral Performance
Among Sensex constituents, Tech Mahindra led the losses with a 6% decline, followed by IndusInd Bank, which fell over 5%. Other major laggards included Mahindra & Mahindra, Bharti Airtel, Infosys, Tata Motors, Titan, TCS, Nestlé, and Maruti Suzuki. HDFC Bank was the sole gainer in the index.All BSE sectoral indices ended in the red, with the IT sector suffering the most:
- Teck (-4.20%)
- BSE Focused IT (-4.20%)
- IT (-4.13%)
- Telecommunication (-4.09%)
- Auto (-3.84%)
- Consumer Discretionary (-2.74%)
- Oil & Gas (-2.61%)
- Power (-2.29%)
Global Sell-Off Triggers Widespread Panic
Major Asian indices, including Seoul, Tokyo, Shanghai, and Hong Kong, closed with steep losses, mirroring the trend in US and European markets.Vinod Nair, Head of Research at Geojit Financial Services, attributed the decline to fears of a global trade war, particularly the 25% tariff on US imports from Canada and Mexico, set to take effect next week, along with additional tariffs on Chinese goods.
Adding to market uncertainty, speculation over possible tariffs on European Union imports has further dampened investor sentiment.
Longest Losing Streak in Nearly Three Decades
"The market's fall was primarily driven by concerns over escalating trade tensions and a slowing US economy," said Ameya Ranadive, Senior Technical Analyst at StoxBox."This marks the fifth consecutive month of losses for the Nifty-50, making it the longest losing streak in nearly 30 years," he added.
Broader Market Impact and Institutional Outflows
The sell-off has been more pronounced in broader markets:- Nifty Midcap 150: Down 21.1% from its 52-week high
- Smallcap 250: Declined 25.6%
- Microcap 250: Plummeted 26.2%
Weekly and Monthly Market Performance
- Sensex Weekly Decline: 2,112.96 points (2.80%)
- Nifty Weekly Decline: 671.2 points (2.94%)
- Sensex February Loss: 4,302.47 points (5.55%)
- Nifty February Loss: 1,383.7 points (5.88%)
Oil Prices and Economic Data Outlook
The global oil benchmark, Brent crude, slipped 0.69% to $73.53 per barrel, adding to the pressure on energy stocks.Investors now await India's Q3 GDP data, which could provide key insights into the country’s economic trajectory and potentially influence market direction.
Outlook: Cautious Sentiment Prevails
With persistent foreign outflows, global trade tensions, and fears of an economic slowdown in the US, market participants remain wary of further declines. Krishna Appala, Senior Analyst at Capitalmind Research, noted that while valuations are turning attractive, volatility is expected to persist in the short term.As global uncertainties continue to weigh on investor sentiment, the coming weeks will be crucial in determining the market's direction.
