Big crash in Indian stock market, impact of Trump’s tariffs

Desk Report,

Big crash in Indian stock market, impact of Trump’s tariffs

The Indian stock market has faced a big fall at the end of the week. Both the Sensex and Nifty 50 indices fell sharply on Friday. Along with another index, the Bank Nifty. All three indices fell by about 1 percent yesterday.

Big crash in Indian stock market, impact of Trump’s tariffs

At the end of the day yesterday, the Sensex index stood at 79,857.79 (-765.47), the Nifty 50 index at 24,363.30 (-232.85) and the Bank Nifty at 55,004.90 (-516.25). News Economic Times

The total market value of BSE listed companies fell from ₹445 lakh crore to ₹440 lakh crore yesterday. Due to massive share selling in all sectors, the market capitalization has decreased by about 5 lakh crore rupees in just one session. On a weekly basis, it is seen that the indices have continued to fall for six consecutive weeks. In the week ending August 8, both Sensex and Nifty 50 indices lost about 1 percent each. HDFC and Bharti Airtel stocks suffered a big setback yesterday. As a result, the indices fell further. All sectoral indices fell yesterday.

Most sectors of Nifty saw a big fall last week. Nifty Small Cap and Mid Cap fell by 1.4 percent and 1.1 percent respectively. Considering the entire week, the banking sector saw good profits. Apart from this, metals also saw some profit. But IT, finance, energy, oil and gas, FMCG and pharmaceutical sectors saw a big fall.

Last week, the stock prices of several big companies fell. Adani Enterprises fell by about 7 percent. The stock prices of textile export companies KPR Mill, Gokuldas Export, Burdwan Textiles, Trident have fallen a lot. On the other hand, Hero MotoCorp showed a hopeful picture. LIC prices also increased yesterday.

According to The Mint, the weak Indian market has already taken a big hit due to Trump’s tariff policy. Concerns about falling corporate earnings, overvaluation and a large amount of foreign capital outflow have not subsided yet. Trump’s recent tariff imposition and aggressive stance have created new fears among investors. Experts believe that India’s GDP could decline by up to 1 percent due to the 50 percent tariff.

Vinod Nair, head of research at Geojit Investments, said that the Indian stock market has fallen to its lowest level in three months on fears about the impact of US tariffs on India’s exports. The pressure on the domestic index has increased further as foreign institutional investors have continuously sold shares.

Nair also said that global financial institutions have started reducing India’s economic growth forecasts considering the impact of ongoing tariff concerns. Growth forecasts for 2025 and 2026 have also been reduced. As a result, the uncertainty surrounding India’s trade and macroeconomic situation is only increasing.

Meanwhile, foreign investment in the Indian stock market has also taken a hit. In January this year, a huge amount of foreign investment left the Indian market. The situation has improved somewhat since March. Foreign investment came into the Indian stock market in April, May and June. But from July, foreign investment has again started to leave. The same situation was created in August due to Trump’s tariff imposition.

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