Sensex, Nifty hit three-month low amid jitters over Trump's 50% tariffs

The Indian equity benchmarks, Sensex and Nifty, plummeted to a three-month low on Friday, concluding their longest losing streak since the market crash in March 2020. The Sensex tanked by 765.47 points, or 0.95 per cent, to settle at 79,857.79, while the Nifty dropped by a similar margin to close at 24,363.30. The sharp decline was largely attributed to rising jitters over US President Donald Trump's decision to impose 50 per cent tariffs on Indian imports and a continuous outflow of foreign funds from the domestic market.

The market sentiment has been severely impacted by Trump's escalating trade rhetoric. The US President, citing India's continued purchase of Russian crude oil, announced a 25 per cent tariff on July 30, which was then followed by an additional 25 per cent levy this week. The move has led to a significant drop in investor wealth, with the total market capitalization of all BSE-listed companies falling by a staggering ₹5 lakh crore in a single trading session on Thursday. Foreign Institutional Investors (FIIs) have been net sellers for ten consecutive sessions, offloading equities worth nearly ₹5,000 crore on Thursday alone.

While some analysts believe the direct impact on the broader economy may be limited, there are widespread concerns about export-oriented sectors like textiles, gems and jewelry, and seafood, which have high exposure to the US market. The imposition of the steep tariffs has already caused some exporters to halt US-bound orders. Among the top laggards in the Sensex pack were Bharti Airtel, Tata Motors, and Reliance Industries, while NTPC and Titan were among the few gainers. The market's uncertainty is expected to continue until the tariff dispute is resolved.