Investors lose almost 7.5 lakh crores as market collapse amid tariff threats

The Indian stock market saw a sharp decline on Friday as the Sensex plunged 1,032.99 points (1.38%) to 73,579.44, wiping out ₹7.46 lakh crore in market capitalization. The sell-off followed a weak global trend, driven by renewed trade war fears after fresh tariff threats from the US. Investors reacted negatively, leading to a significant downturn across sectors.

The decline in equities led to a sharp erosion in the market capitalization of BSE-listed companies, which fell to ₹3,85,63,562.91 crore ($4.42 trillion) during morning trade. Among the worst-hit stocks from the Sensex pack were Tech Mahindra, IndusInd Bank, Maruti, HCL Tech, TCS, Infosys, Mahindra & Mahindra, and Titan. However, Axis Bank, HDFC Bank, Reliance Industries, and Adani Ports managed to post gains despite the broader market weakness.

Global markets also faced a steep decline, with Seoul, Tokyo, Shanghai, and Hong Kong trading with deep losses. Analysts attributed the drop to US market weakness, which hit a five-month low on Thursday. "The US market fell, closing at a five-month low, while US Treasury yields rose following President Donald Trump's new tariff threats," said Vikas Jain, Head of Research at Reliance Securities. The latest announcement of an additional 10% tariff on China has further intensified market concerns, with uncertainty about China’s response.

Foreign Institutional Investors (FIIs) continued their selling spree, offloading ₹556.56 crore worth of equities on Thursday, according to exchange data. The sustained capital outflows added pressure to domestic equities, contributing to the market decline. The global oil benchmark Brent crude also declined 0.51% to $73.66 per barrel, increasing concerns over inflation and economic stability in import-heavy economies.

Market analysts are closely watching global trade developments and macroeconomic indicators for further cues. "Stock markets dislike uncertainty, and uncertainty has been on the rise ever since Trump was elected the US president," said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. The overall market sentiment remains cautious as investors monitor global trade tensions and their impact on financial markets.