The Indian stock market experienced a sharp decline on Tuesday, with benchmark indices plummeting nearly 1.5% amid investor concerns over US President Donald Trump’s tariff threats. The S&P BSE Sensex dropped by 1,018.20 points, closing at 76,293.60, while the NSE Nifty50 fell by 309.80 points to settle at 23,071.80. This marked the fifth consecutive session of losses, wiping out nearly ₹10 lakh crore in investor wealth and dragging the total market capitalisation of BSE-listed firms down to ₹407.95 lakh crore.
The sell-off was broad-based, with all major sectors closing in the red. Banking, auto, metal, and IT stocks were among the worst hit, while midcap and smallcap stocks faced heavy selling pressure, slipping by 3.5% and 3.9%, respectively. Large banking stocks such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank fell by up to 3%, contributing to a 270-point drop in the Sensex.
According to Vinod Nair, Head of Research at Geojit Financial Services, the market downturn was driven by concerns over US trade policies, domestic economic growth uncertainty, and persistent selling by Foreign Institutional Investors (FIIs). "The mid-and small-cap stocks experienced significant declines due to demand concerns and higher valuations. Although the RBI’s intervention provided some recovery for the rupee from yesterday's record low, it remains under pressure and is likely to keep the market volatile in the near term," he stated.
Despite the widespread decline, a few stocks managed to post gains. Adani Enterprises led the gainers, rising 1.32%, followed by Grasim Industries, which gained 0.76%. Trent Limited and Bharti Airtel rose by 0.52% and 0.17%, respectively, while Britannia Industries recorded a marginal 0.09% increase.
Market experts suggest that investors should consider hedging and asset diversification strategies to navigate the current bearish trend. VLA Ambala, Co-Founder of Stock Market Today (SMT), advised investors to prepare for upcoming opportunities. "Investors must consider hedging and asset diversification to realise multifold gains in a bear market. Considering the prevailing market conditions, we could see lucrative opportunities appear soon," she said.
Looking ahead, Nifty is expected to find support in the range of 22,950 to 22,810, while resistance is likely between 23,100 and 23,170 in the next intraday trading session. Traders and investors will closely monitor global market trends, US Federal Reserve signals, and RBI’s measures to stabilise the rupee for further cues.
