India’s Sensex and Nifty fell nearly 1% amid Trump doubling tariffs on Indian imports and heavy foreign fund outflows, marking their longest losing streak since April 2020.
Equity markets in India dropped sharply on Friday due to concerns over US President Donald Trump’s increased tariffs on Indian imports and continuous foreign fund withdrawals. The Sensex plunged 765.47 points (0.95%) to close at 79,857.79, while the NSE Nifty fell 232.85 points (0.95%) to settle at 24,363.30, according to a PTI report.
The Nifty declined 0.8% and the Sensex lost 0.9% over the week, marking the longest losing streak for these benchmarks since April 2020, Reuters reported. Investor wealth sharply decreased on Thursday as a broad sell-off hit the Bombay Stock Exchange (BSE).
The total market capitalization of all BSE-listed companies dropped Rs. 5 lakh crore in one session, falling from Rs. 445 lakh crore to Rs. 440 lakh crore, according to bseindia.com.
On Wednesday, President Trump raised tariffs on Indian goods to 50%, citing India’s purchase of Russian oil. The tariff hike was implemented in two phases: an initial 25% tariff announced on July 30, followed by an additional 25% announced on Wednesday through an executive order titled 'Addressing Threats to the US by the Government of the Russian Federation'. This second levy takes effect from August 7.
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Among Sensex firms, Bharti Airtel, Tata Motors, Mahindra & Mahindra, Kotak Mahindra Bank, Axis Bank, and Reliance Industries were the biggest losers on Friday. On the other hand, NTPC, Titan, Trent, ITC, and Bajaj Finserv posted gains.
The benchmarks had already slipped to three-month lows on Thursday after the first 25% tariffs were imposed, intensifying trade tensions. Foreign Institutional Investors (FIIs) sold equities worth Rs. 4,997.19 crore that day, while Domestic Institutional Investors (DIIs) bought stocks worth Rs. 10,864.04 crore.
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Japan’s Nikkei 225 closed higher, while South Korea’s Kospi, China’s Shanghai Composite, and Hong Kong’s Hang Seng ended lower, in Asian markets.
European markets mostly traded higher, and US indices closed mixed on Thursday. Meanwhile, Brent crude oil prices rose 0.59%, reaching $66.82 per barrel.
The increasing tariffs and foreign outflows continue to pressure Indian markets as global uncertainties fuel investor concerns.
