Benchmark equity markets in India experienced a significant downturn on Thursday, with major indices closing sharply lower amid escalating global trade tensions. The S&P BSE Sensex plunged by 765.47 points, slipping beneath the crucial 80,000 threshold, while the NSE Nifty50 declined by 232.85 points, settling at 24,363.30. The impact of the sell-off was more pronounced in the broader markets, where midcap and smallcap stocks saw steeper losses, mirroring rising apprehension among investors regarding the shifting dynamics of international trade.
Investor sentiment took a notable hit following fresh tariff warnings issued by US President Donald Trump, fueling concerns about potential repercussions for Indian exports. The market reaction was widespread, with all major sectors facing pressure and volatility surging across the board. Real estate and metal stocks were among the worst affected, reflecting the vulnerability of these industries to external trade shocks.
Vinod Nair, who heads research at Geojit Financial Services, noted that the Indian stock market had slipped to its lowest level in three months, dragged down by apprehensions surrounding US tariff measures and their potential to disrupt India’s trade flows. He also pointed out that foreign institutional investors (FIIs) maintained their selling streak, thereby deepening the downward pressure on the domestic indices.
Adding to the prevailing market gloom, several global financial bodies have revised India’s economic growth forecasts downward for 2025 and 2026. These downward revisions are being attributed to uncertainties in international trade policies and their expected ripple effects on the country’s macroeconomic outlook. With India-US trade negotiations now facing renewed obstacles, analysts are warning of persistent instability in market movements going forward.
The sharp market correction highlights growing fears that intensifying trade disputes may severely impact India’s export performance. Key sectors like steel, aluminium, and textiles — all heavily reliant on international demand — are anticipated to bear the brunt of any newly imposed US tariffs, raising alarms about the sustainability of India’s export-driven growth shortly.
