Indian markets tumble as US tariffs trigger heavy sell-off; Rs 4 lakh crore investor wealth wiped out

CHENNAI: The Indian stock market faced a sharp downturn on Thursday as renewed trade tensions and fresh US tariffs sparked a wave of selling. The Sensex slumped 700 points to close at 77,850, while the Nifty shed 215 points to settle at 23,450. The decline translated into a market capitalisation erosion of about Rs 4 lakh crore for BSE-listed firms in a single session, underscoring the severity of investor concerns.

The fresh round of US tariffs reignited fears of an escalating trade war, pushing global markets into risk-off mode. Asian and European equities also came under pressure, and Indian markets mirrored the global trend. Foreign portfolio investors (FPIs), already in a withdrawal phase, stepped up their selling, adding to liquidity concerns.

Sectoral impact: IT, metals, autos under pressure
The sell-off was broad-based, with high-beta sectors leading the decline. The Nifty IT index slipped over 2.5%, dragged down by worries of slower tech spending in the US. Metals fell nearly 3%, as tariff fears stoked demand uncertainty in global commodities. Autos were down 1.8%, hurt by weak earnings and sluggish retail demand.