Sensex Falls Over 1,400 Points Amid Rising Tariff War Concerns
The Sensex fell over 1,400 points and the Nifty dropped 420 points due to President Trump’s announcement of an additional 10% tariff on China. This market decline reflects broader uncertainties and rising foreign fund outflows. Major stocks suffered losses, and experts predict ongoing volatility in response to tariff-related tensions.
On Friday, the Sensex experienced a significant decline, dropping over 1,400 points, while the Nifty fell by 420 points, mirroring tumultuous movements seen in global markets. This downturn follows the announcement by U.S. President Donald Trump of an additional 10% tariff imposed on Chinese imports, escalating concerns among investors worldwide.
At the close of trading, the Sensex stood at 73,198.10, reflecting a decrease of 1,414.33 points or 1.9%, while the Nifty settled at 22,124.70, down 420.35 points or 1.86%. Compared to its peak on September 27, 2024, the BSE index has declined by 12,780.15 points, representing a 14.86% drop, while Nifty is down 4,152.65 points, marking a 15.8% decline.
Market analysts have observed that rising foreign fund outflows are adversely affecting investor confidence. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the discomforting nature of uncertainty in stock markets, stating, “Stock markets dislike uncertainty, and uncertainty has been on the rise ever since Trump was elected the US president.”
Trump’s comments on tariffs have raised further apprehension; he asserted that the 25% duties on imports from Canada and Mexico will take effect on March 4 and that China will also face an additional 10% tariff. Subsequently, China announced that it would enact “all necessary countermeasures” to this tariff increase, warning that it might harm ongoing negotiations.
The Sensex’s decline was driven by significant drops in major stocks, including Tech Mahindra which fell over 6%, and IndusInd Bank at 5%. Other impacted companies included Mahindra & Mahindra, Bharti Airtel, and Tata Consultancy Services among others. Global markets responded similarly, with U.S. markets concluding lower, as did indices in several Asian markets including Tokyo and Shanghai.
The recent plunge in the Sensex and Nifty highlights the substantial influence of external factors, particularly the announcement of new tariffs by President Trump, which has amplified uncertainties in the market. As investors react to these developments, the implications for international trade and diplomatic relations, particularly with China, remain critical areas to watch.
Original Source: www.ndtv.com
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