 "Sensex crashes over 1,000 points amid trade tensions over Trump tariffs")
The benchmark index of the Bombay Stock Exchange – Sensex – fell by over 1,100 points, dropping to nearly 76,000 during intraday trade on Tuesday amid tariff threats from US President Donald Trump.
Meanwhile, the Nifty50 index also declined sharply, falling 327 points or 1.4 per cent. As of 1:45 PM, Nifty was trading around 23,050.
This marks the fourth consecutive day of decline in the indices as Dalal Street continues to grapple with rising uncertainty due to a mix of global and domestic factors. However, global uncertainties due to tariff threats from US President Donald Trump are the main factor behind this sharp decline.
The Nifty Bank, Nifty Financial Services, and Nifty IT are seeing a heavy downfall.
The small-cap and mid-cap indices fell by 3.9 per cent and 3.5 per cent, respectively. Among the top losers are HDFC Bank, Reliance, LT, Zomato, ITC, and TCS, all seeing significant losses in market capitalisation. The Nifty Pharma index was also down by 2 per cent.
Trump’s 25 per cent import tax on steel, aluminium
Earlier, Trump ordered a 25 per cent import tax on all steel and aluminium entering the US in a major expansion of existing trade barriers.
The tariffs will increase the costs of importing metals into the US.
US-China trade war
Trump has also imposed an additional 10 per cent tariff on imports from China, bringing the two nations to the verge of a trade war. China has retaliated by imposing tariffs on US goods and ordering a probe against US tech giant Google.
Tariffs on Canada, Mexico
President Trump also signed executive orders imposing 25 per cent tariffs on nearly all imports from Canada and Mexico. The order was delayed for a month after multiple negotiations between both sides.
Trump’s actions overshadows consumption boost from govt
These actions have even overshadowed the recent consumption boost from the Union Budget 2025 and the RBI’s repo rate cut.
Short selling by FIIs
Another reason for the market’s weakness is the persistent selling by foreign institutional investors (FIIs).
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