Sensex, Nifty slide 1.5% as trade war fears erase ₹10 lakh crore

Indian equity markets extended losses for a second straight session on Tuesday, with benchmark indices plunging sharply as global trade war fears rattled investor sentiment. The selloff wiped out more than Rs. 10 lakh crore in investor wealth over two days, amid heightened geopolitical tensions and persistent foreign fund outflows.

The 30-share Sensex slumped 1,065.71 points to close at 82,180.47, while the Nifty 50 dropped 353 points to settle at 25,232.50. Markets were weighed down by a combination of weak global cues, pre-budget uncertainty and sustained selling by foreign investors.

Global sentiment turned risk-averse after US President Donald Trump threatened tariffs against several European nations, escalating concerns of a trans-Atlantic trade war. The dispute, linked to Trump’s stance on Greenland, raised fears of retaliatory measures by the European Union, deepening uncertainty across global markets.

Foreign institutional investors continued to pare exposure to Indian equities, with more than Rs. 29,000 crore reportedly sold so far this month. A weakening rupee, rising global bond yields and lacklustre corporate earnings further dented investor confidence, adding pressure on domestic indices.

Back home, caution ahead of the Union Budget 2026 also kept buyers on the sidelines. With concerns over fiscal consolidation and muted earnings growth, investors shifted toward safe-haven assets, pushing gold and silver prices to record highs as equity markets remained under stress.