Sensex crashes 1,000 points over US tariffs, Nifty sinks 330 points

Indian stock markets faced a sharp downturn on Tuesday as fears over US trade policy and weak domestic earnings weighed on investor sentiment. The benchmark BSE Sensex plummeted 1,047 points by 1:30 PM, while the Nifty 50 index slipped 339 points, hitting fresh lows. All major sectoral indices traded in the red, reflecting widespread panic selling.

The market decline followed US President Donald Trump's decision to hike tariffs on steel and aluminum imports to 25% without any exceptions. Investors remained wary after Trump hinted at imposing additional reciprocal tariffs on multiple countries in the coming days. The escalating trade tensions added to existing concerns about India's economic outlook, triggering a sell-off across sectors.

All 13 key sectors, including banking, auto, IT, and FMCG, reported losses. The broader market was hit hard, with midcap stocks dropping 2% and smallcap stocks losing 2.5%. The heavy selling pressure pushed nearly 300 Nifty stocks to their 52-week lows, while over 400 stocks on the Sensex touched yearly lows, underscoring the depth of the downturn.

Among the worst-hit stocks on the Sensex were Zomato, Power Grid Corporation of India, and Tata Motors, all suffering steep declines. On the Nifty 50, Eicher Motors, Apollo Hospitals, and Shriram Finance led the losses, reflecting the widespread impact of the sell-off. Weak quarterly earnings from several companies further eroded investor confidence, intensifying the market rout.

The sell-off in Indian equities follows a broader global market slump triggered by heightened trade war fears. Analysts warned that if the US follows through with more tariffs, emerging markets like India could face prolonged volatility. Foreign institutional investors have already been reducing their exposure, and domestic mutual funds are struggling to cushion the impact of the global turmoil.