Sensex Crashes Over 1,300 Points, Nifty Below 23,200 Amid Trump Tariff Fears
Indian stock markets took a sharp hit on Tuesday as the Sensex crashed over 1,300 points and the Nifty slipped below 23,200, driven by global jitters over impending US reciprocal tariffs set to take effect on April 2. Investors turned cautious, triggering a sell-off in IT and banking stocks, as uncertainty loomed ahead of the tariff deadline.
The S&P BSE Sensex closed at 76,024.51, down 1,390.41 points or 1.80%, while the NSE Nifty50 ended at 23,165.70, shedding 353.65 points or 1.50%. The downturn erased early gains, with volatility gripping Dalal Street throughout the trading session.
Broader indices followed suit, with the BSE Midcap index falling 0.9% and the Smallcap index gaining a marginal 0.2%.
IT heavyweights like HCL Technologies, Infosys, and Tata Consultancy Services (TCS) were among the top losers, with declines ranging from 2% to 4%. Banking stocks, including HDFC Bank and Bajaj Finserv, also saw sharp drops, reflecting concerns over the US tariff impact on export-driven sectors.
In contrast, IndusInd Bank, Trent, Bajaj Auto, Jio Financial, and HDFC Life emerged as gainers, offering some resilience amid the broader slump.
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The market slide was largely attributed to uncertainty surrounding US President Donald Trump’s reciprocal tariff policy, dubbed “Liberation Day,” set for April 2. Investors feared the tariffs could disrupt global trade, hitting Indian IT and manufacturing firms reliant on US markets.
“Markets are reacting to the lack of clarity on the tariff details,” a senior analyst told Moneycontrol, noting that the absence of a finalized India-US trade deal added to the unease.
Global markets showed mixed trends, with Asian markets rising in morning trade, while Wall Street had ended in the green the previous day. However, GIFT Nifty futures traded lower at 23,450.00, down 187.50 points or 0.79%, signaling a weak start for Indian indices.
The India VIX, a measure of market volatility, surged 4.89% to 13.34, reflecting heightened investor nervousness.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, earlier noted, “Market trends following the tariff announcement will depend on its specifics and impact on different sectors.” He highlighted India’s strong 6.3% return in March, driven by foreign institutional investors (FIIs) turning buyers.
Despite Tuesday’s fall, experts suggested that a potential trade deal could stabilize markets in the coming days.
With the US tariff deadline just a day away, investors are bracing for more volatility. The focus remains on the tariff announcement and any updates on India-US trade talks, which could mitigate the impact on Indian stocks. Analysts expect markets to stabilize once clarity emerges, though short-term fluctuations are likely.
