Sensex Plunges Over 650 Points, Nifty Slips Below 24,800 as US Tariff Fears Spook Markets
Indian stock markets tumbled on Tuesday as investor sentiment soured ahead of the implementation of additional US tariffs on Indian goods, set to take effect from Wednesday. The benchmark BSE Sensex plunged more than 650 points in early trade before settling around 543 points, or 0.66%, lower at 81,093. The broader Nifty50 index fell by 165 points to dip below the crucial 24,800 mark, reflecting widespread selling pressure.
The market decline was fueled by a combination of domestic and global headwinds. The primary concern was the impending 25% additional US tariff, which has cast a long shadow over trade relations. This anxiety was compounded by unsettling news from the United States, where President Donald Trump fired Federal Reserve Governor Lisa Cook over alleged falsification of documents and issued fresh threats of export curbs on semiconductors in retaliation for digital taxes imposed by other countries.
The sell-off was broad-based, with heavyweight stocks leading the fall. On the Sensex, major losers included Sun Pharma, Tata Steel, ICICI Bank, Adani Ports, Bharti Airtel, and HDFC Bank. The negative sentiment also gripped the broader market, with the Nifty MidCap and SmallCap indices both falling by nearly 0.90%. Sectorally, pharma, realty, metals, and PSU banks were the biggest laggards, while the FMCG sector was the lone gainer, albeit marginally.
Market analysts noted a non-directional sentiment, suggesting cautious, level-based trading. According to Shrikant Chouhan of Kotak Securities, the 25,000 level remains a key resistance for the Nifty, while a breach below the 24,850 support could drag the index further down.
The nervousness was not confined to India, as most Asian markets also traded in the red, with Japan’s Nikkei and South Korea’s Kospi seeing significant drops. Wall Street also closed lower on Monday as optimism for interest rate cuts faded amid the fresh geopolitical and trade uncertainties.
