Mumbai, February 28: Indian equity markets witnessed a sharp downturn on Friday, reflecting deep losses in global markets triggered by the US government's latest decision to impose an additional 10% tariff on Chinese imports. Persistent selling by foreign institutional investors (FIIs) further aggravated the decline, leaving investors rattled.
Sensex and Nifty Take a Hit
The 30-share BSE Sensex nosedived 1,073.48 points to 73,538.95 during afternoon trade, while the broader NSE Nifty index slumped 327.55 points, touching 22,217.50. This marks a significant reversal from Thursday's marginal gains, where the Sensex had edged up by just 10.31 points to settle at 74,612.43, while the Nifty recorded its seventh consecutive day of losses, dropping 2.50 points to close at 22,545.05.Major Losers and Gainers in Sensex
Stocks in sectors sensitive to global trade witnessed the sharpest declines. Tech Mahindra, IndusInd Bank, Titan, Infosys, Mahindra & Mahindra, Maruti, HCL Technologies, and Tata Consultancy Services (TCS) emerged as major laggards.However, bucking the negative trend, select blue-chip stocks such as HDFC Bank, Axis Bank, Reliance Industries, and Adani Ports managed to post modest gains, providing some relief amid widespread investor pessimism.
Global Markets Deep in Red Amid Tariff Fears
Asian markets also mirrored Wall Street’s overnight weakness, with benchmark indices in Tokyo, Seoul, Shanghai, and Hong Kong registering significant losses. Investors globally were spooked by uncertainties surrounding the fresh tariff announcement, exacerbated by disappointing financial results from Nvidia Corporation and mixed US economic data.On Thursday, US markets closed sharply lower, sending ripples through international equity markets.
Expert Insights: Market Unease Due to US-China Tensions
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, "Stock markets dislike uncertainty, and uncertainty has been rising ever since Trump was elected as the US president. The spate of tariff announcements by Trump has impacted markets, and this latest 10% tariff on China confirms market fears that the initial months of Trump's presidency would involve threats of tariffs as leverage to negotiate favorable terms for the US. How China responds to this latest tariff imposition remains a critical factor for market direction."Similarly, Ameya Ranadive, Chartered Market Technician at StoxBox, remarked, "Asian equities fell sharply following Wall Street’s steep sell-off as traders grappled with disappointing earnings from Nvidia, fresh US tariff developments, and mixed economic signals."
Persistent FII Outflows
Foreign institutional investors continued their selling spree, offloading equities worth Rs 556.56 crore on Thursday, according to exchange data. Continuous FII exits added pressure on domestic indices, dampening investor sentiment further.Oil Prices Slide
Meanwhile, global oil benchmark Brent crude dipped 0.65%, trading at USD 73.56 per barrel, reflecting ongoing global economic uncertainties.With volatility likely to persist amid escalating US-China trade tensions, investors remain cautious, closely monitoring global developments and FIIs’ moves to gauge the market’s near-term trajectory.
