Sensex, Nifty plunge over 3% amid escalating trade war fears
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Mumbai: In a massive rout on Dalal Street, Indian equity markets nosedived on Monday morning amid heightened fears of a global trade war, triggered by concerns over impending reciprocal tariffs from the US. The sharp decline mirrored a global sell-off across major markets.
By 9:55 am, the benchmark Sensex had plummeted by 2,690 points or 3.57% to 72,654, while the broader Nifty tumbled 881 points or 3.85% to 22,020, marking one of the steepest intraday falls in recent months.
The sell-off was widespread, hitting not just large-cap stocks but also midcaps and small-caps. The Nifty Midcap 100 index dropped 2,335 points, or 4.61%, to 48,310, while the Nifty Smallcap 100 index slumped 1,055 points, or 6.73%, to 14,620, indicating broad-based investor panic.
All sectoral indices were deep in the red, with auto, IT, realty, media, energy, and infrastructure stocks leading the decline. In the Sensex basket, major losers included Tata Steel, Tata Motors, Infosys, Tech Mahindra, L&T, HCL Tech, TCS, Reliance Industries, NTPC, Axis Bank, M&M, Kotak Mahindra Bank, and IndusInd Bank.
Global cues added to the bearish sentiment, with most Asian markets trading sharply lower. Indices in Tokyo, Shanghai, Bangkok, Seoul, and Hong Kong's Hang Seng registered losses of up to 11 percent, reflecting widespread concerns over escalating trade tensions.
US markets had already closed significantly lower on Friday, as investors reacted to news of fresh reciprocal tariffs. The Dow Jones Industrial Average shed 5.50%, while the tech-heavy Nasdaq tumbled 5.82%, underscoring the intensity of global investor anxiety.
Crude oil prices also took a hit amid the prevailing uncertainty. In a major move, Saudi Arabia announced its steepest price cut in years, further weighing on oil markets. Brent crude slipped 2.67% to $63.82 per barrel, while West Texas Intermediate fell 2.69% to $60.31 per barrel.
Commenting on the market outlook, Hardik Matalia, Derivative Analyst at Choice Broking, said, “On the technical front, the Nifty 50 has formed a bearish candle on the daily chart, signaling selling pressure at key resistance levels. Immediate support is seen at 22,400 and 22,000 for intraday trading, as the index has historically shown stability around these zones.”
He added that these levels could act as potential reversal zones, offering buying opportunities if supported by favourable price action.
With IANS inputs
