Daijiworld Media Network- Mumbai
Mumbai, Feb 28: Investors faced a massive setback as the Indian stock markets witnessed a steep decline on Friday, wiping out Rs 7.46 lac cr in market capitalisation. The benchmark BSE Sensex plummeted over 1,000 points in morning trade, mirroring weak global cues amid renewed trade war fears and sustained foreign fund outflows.
The 30-share BSE Sensex dropped 1,032.99 points, or 1.38%, to 73,579.44, causing a significant erosion in investor wealth. The total market capitalisation of BSE-listed firms slumped to Rs 3,85,63,562.91 cr ($4.42 trillion), marking a sharp decline in a single session.
Among the worst-performing stocks were Tech Mahindra, IndusInd Bank, Maruti, HCL Tech, Tata Consultancy Services, Infosys, Mahindra & Mahindra, and Titan. However, Axis Bank, HDFC Bank, Reliance Industries, and Adani Ports managed to stay in the green despite the overall market downturn.
Asian markets mirrored the sell-off, with major indices in Seoul, Tokyo, Shanghai, and Hong Kong trading with significant losses. The negative sentiment stemmed from renewed global trade tensions, particularly concerns over fresh tariff threats.
“The US market fell, closing at a five-month low, while US Treasury yields surged following President Donald Trump’s new tariff threats,” said Vikas Jain, Head of Research at Reliance Securities.
The ongoing uncertainty surrounding global trade policies has further dampened market sentiment. According to VK Vijayakumar, chief investment strategist at Geojit Financial Services, markets are reacting negatively to tariff uncertainties.
"Stock markets dislike uncertainty, and it has been on the rise ever since Trump’s election. The spate of tariff announcements by Trump has been impacting markets, and the latest 10% tariff hike on China confirms fears that he will use trade negotiations to secure favorable deals for the US," Vijayakumar noted.
Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 556.56 cr on Thursday, exacerbating the market slump.
Amid the market turmoil, Brent crude oil prices slipped 0.51% to $73.66 per barrel, adding to the prevailing economic uncertainties.
As global volatility intensifies, investors remain cautious, keeping a close watch on further developments in global trade policies and economic indicators.