Investors suffered significant losses as their combined wealth plunged by Rs 7.46 lakh crore in Friday's morning trade, following a steep fall in domestic equity markets. The benchmark BSE Sensex crashed by over 1,000 points, driven by heightened global trade war concerns and sustained foreign fund outflows.
The 30-share Sensex slumped 1,032.99 points, or 1.38%, to settle at 73,579.44 points during morning hours, mirroring negative sentiment prevailing across international equity markets. Consequently, the total market capitalisation of BSE-listed companies fell sharply by Rs 7,46,647.62 crore to Rs 3,85,63,562.91 crore (approximately USD 4.42 trillion).
Global Trade Tensions Weighing on Investor Sentiment
Fresh threats of tariffs from the United States, rekindling fears of a global trade war, have notably dampened investor confidence. U.S. markets closed sharply lower on Thursday, marking their lowest level in five months, while treasury yields climbed following tariff threats from former U.S. President Donald Trump against China.Highlighting the uncertainty, Vikas Jain, Head of Research at Reliance Securities, stated, "The U.S. market fell, closing at a five-month low, while U.S. Treasury yields rose following President Trump's new tariff threats."
Further explaining market unease, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, "Stock markets dislike uncertainty, and uncertainty has been on the rise ever since Trump was elected U.S. president. The latest 10% tariff imposed on China reinforces investor fears that Trump plans to leverage tariffs as a negotiating tool to secure favorable settlements for the U.S."
The market now closely watches how China responds to this latest escalation, which will be crucial in determining market direction moving forward.
Major Losers and Gainers on Sensex
From the Sensex pack, the biggest losers during morning trade were:- Tech Mahindra
- IndusInd Bank
- Maruti Suzuki
- HCL Technologies
- Tata Consultancy Services (TCS)
- Infosys
- Mahindra & Mahindra (M&M)
- Titan
- Axis Bank
- HDFC Bank
- Reliance Industries
- Adani Ports
Asian Markets Deeply Impacted
Markets across Asia mirrored the negative trend, with indices in Seoul, Tokyo, Shanghai, and Hong Kong experiencing significant declines, reflecting widespread bearish sentiment amid escalating global trade concerns.Foreign Investors Continue Selling
Foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth Rs 556.56 crore on Thursday, as per the latest exchange data. Persistent foreign fund withdrawals have contributed to volatility in Indian markets, further pressuring stock prices.Crude Oil Prices Decline
Meanwhile, the global oil benchmark, Brent crude, edged down by 0.51% to trade at USD 73.66 per barrel amid prevailing global economic uncertainties, offering limited relief amidst broader market turmoil.Investors are advised to maintain caution and closely monitor global developments, particularly around international trade relations, to navigate market volatility effectively.
