Markets: Global uncertainties, Trump tariffs, trigger bloodbath in Indian stocks
Virendra Pandit
New Delhi: With the uncertainties unfolding in global markets, mainly because of US President Donald Trump’s tariff plans and strengthening of the dollar, Indian stock markets, already reeling under huge losses, witnessed a blood bath on Friday as the Sensex and Nifty plunged over 1,400 and 420 points on the last day of February 2025.
The two Indian indices tumbled amid broad-based selling. The Sensex plunged 1414.33 points or 1.90 percent to 73,198.10, while the Nifty fell 420.35 points or 1.86 per cent to close at 22,124.70.
All 13 sectoral indices fell, with BSE SmallCap and Midcap sliding over 2 percent each. IT and financial stocks led losses as foreign investors sold heavily. US President Trump’s new tariffs on Mexico, Canada, and China fuelled fears of a global trade war in the coming weeks.
In the currency market, the Indian rupee depreciated 28 paise as US dollar strengthened amid trade tariff uncertainty. Forex traders carefully navigated market flux, impacting the rupee, dollar, equities, and oil prices, the media reported.
According to reports, from among the 4,053 stocks, 607 advanced while 3,351 declined and 95 remained unchanged. Altogether 48 stocks recorded a 52-week high and those that hit a 52-week low numbered 882. Nearly 90 stocks traded in the upper circuit, and 469 in the lower circuit.
As the markets opened on Friday, equity benchmark indices witnessed heavy selling pressure amid weak global cues after the US President vowed to impose tariffs on Canada and Mexico, as planned, from March 4 onwards. Besides, Trump also threatened China with an additional 10 percent tariff.
On Friday, it was a one-way loss for the BSE Sensex after it opened with a negative gap of 400-odd points. The BSE benchmark index ended the week with a loss of 2,113 points or 2.8 percent, and was down 4,303 points or 5.6 percent for February 2025. The Sensex has now shed nearly 15 percent from its all-time high of 85,978.
Its counterpart, the NSE Nifty 50 index, crashed to a low of 22,105, before signing off the day with a loss of 1.9 per cent or 420 points at 22,125. It shed 5.9 percent in February, and has cracked nearly 16 percent from its life-time high of 26,277. The Nifty would enter a bear market territory if it slides up to 20 percent from its peak.
The Friday selling was broad-based across sectors with IT and auto shares being worst hit. IndusInd Bank, down 7 percent, was the biggest loser. Tech Mahindra, Mahindra & Mahindra, Bharti Airtel, Tata Motors, Titan, Infosys, and Nestle India shed 4 to 6 percent each.
Altogether 27 out of the Sensex 30 shares declined over 1 percent each. HDFC Bank. up 2 percent, was the lone shining star among the Sensex 30 shares.
In the broader market, the BSE MidCap and SmallCap indices slipped over 2 percent. The BSE SmallCap index logged its biggest monthly fall in the last 5 years.
