Stock market bloodbath: Sensex plunges over 1,000 points on US tariff concerns
Synopsis
Sensex closed at 76,293.60 points, down 1,018.20 points or 1.32 per cent, while Nifty closed at 23,071.80 points, down 309.80 points or 1.32 per cent. All sectoral indices were in deep red, NSE data showed.
Domestic stock markets saw a bloodbath on Tuesday over Trump tariff concerns and continued outflow of foreign portfolio from India. US President Donald Trump's announcement of a 25 per cent tariff on steel and aluminium imports to the US rattled global investor sentiment, and India is not an exception. Investors anticipate potential disruptions to global trade during Trump presidency.
Sensex closed at 76,293.60 points, down 1,018.20 points or 1.32 per cent, while Nifty closed at 23,071.80 points, down 309.80 points or 1.32 per cent. All sectoral indices were in deep red, NSE data showed.
Sensex is now about 10,000 points below its all-time high of 85,978 points. Sensex has so far slumped 3 per cent this New Year. Weak domestic economic growth, selling by foreign portfolio investors, have also been reflecting on the stock markets.
The recent RBI repo rate cut failed to cheer markets, amid volatility world over.
"The concerns around impending trade wars and countermeasures are expected to impact India. In this situation, market participants should prioritize hedging and diversification to generate multifold gains. Judging the market sentiment, fresh opportunities may arise in this bear market. Investors should plan their next move to successfully encash them as and when they rise in the market," VLA Ambala, SEBI Registered Research Analyst and Co-Founder of Stock Market Today said.
In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each. Weak GDP growth, foreign fund outflows, rising food prices, and slow consumption were some of the hurdles, keeping many investors at bay in 2024.
Going ahead into this week, retail and wholesale inflation would be keenly tracked by market participants for fresh cues.
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