Mumbai, Feb 28 – Indian benchmark indices faced a sharp downturn on Friday, with the BSE Sensex and NSE Niftytumbling nearly 2%, tracking deep losses across global markets. Investor sentiment took a hit following the announcement of an additional 10% tariff on Chinese products, raising concerns about global trade tensions.
The 30-share BSE Sensex slumped 1,414.33 points or 1.90%, closing at 73,198.10. In intraday trade, the index plunged 1,471.16 points, hitting a low of 73,141.27. Meanwhile, the Nifty 50 extended its losing streak to the eighth consecutive session, shedding 420.35 points or 1.86% to close at 22,124.70.
Market Rout: A Persistent Decline
From its all-time high of 85,978.25 on September 27, 2024, the Sensex has plummeted by 12,780.15 points or 14.86%. The Nifty has also suffered a significant correction, declining 4,152.65 points or 15.80% from its peak of 26,277.35 recorded on the same date.Key Triggers Behind the Sell-Off
Market analysts attributed the sharp fall to relentless foreign fund outflows, mounting concerns over the US economic outlook, and growing global trade uncertainties.Vinod Nair, Head of Research at Geojit Financial Services, pointed out that the market downturn was largely influenced by fears of a 25% tariff on US imports from Canada and Mexico, which is set to take effect next week, alongside the additional 10% tariff on Chinese goods.
"Adding to the uncertainty, the potential imposition of tariffs on the European Union has further unsettled investors," Nair said. He noted that all eyes are now on India's Q3 GDP data, which could provide crucial insights into the economic recovery and guide market direction.
Sectoral Bloodbath: Tech Mahindra, IndusInd Bank Lead Declines
Most Sensex constituents ended in the red, with Tech Mahindra sinking over 6%, followed by IndusInd Bank, which dropped more than 5%. Other major laggards included Mahindra & Mahindra, Bharti Airtel, Infosys, Tata Motors, Titan, Tata Consultancy Services, Nestle, and Maruti.Amid the widespread sell-off, HDFC Bank emerged as the sole gainer in the Sensex pack.
Global Markets in Freefall
The bearish trend was mirrored in Asian and European markets, where Seoul, Tokyo, Shanghai, and Hong Kongregistered significant losses. European markets continued to trade lower, while US indices closed sharply down on Thursday, exacerbating the negative sentiment in Indian equities.FII Selling and Oil Price Dip
Foreign Institutional Investors (FIIs) continued their selling spree, offloading ₹556.56 crore worth of equities on Thursday, as per exchange data.Meanwhile, Brent crude oil prices slipped 0.69% to $73.53 per barrel, adding to global market concerns.
