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Benchmark indices opened nearly 1% lower as risk-off sentiment intensified after US President Donald Trump’s announcement of a 25% tariff
Stock Market Crash Today
Stock Market Updates: Indian benchmark indices opened sharply lower on Thursday morning after US President Donald Trump threatened to impose a 25% tariff on goods imported from India starting August 1, along with an unspecified penalty. As of 9:20 am, the BSE Sensex had dropped 604 points, or 0.74%, to 81,668, while the Nifty50 was down 183 points, or 0.73%, at 24,668.
The combined market capitalisation of BSE-listed companies fell by ₹5.5 lakh crore to ₹453.35 lakh crore, as Indian equities saw a sharp sell-off.
On the sectoral front, Nifty Auto declined 1%, while indices tracking banking, metal, pharma, and realty stocks were also deep in the red.
What’s Dragging the Market Down?
Trump’s 25% Tariff Threat:
Investor nerves were rattled after former U.S. President Donald Trump announced a potential 25% tariff on Indian imports. Analysts warn this could hit Indian exporters harder than other trade partners and strain U.S.-India relations.
Sectors such as textiles, pharma, and auto components—major contributors to India’s exports—may take the biggest hit if the tariffs are implemented.
Trump also hinted at further penalties, citing India’s growing ties with the BRICS group and a widening trade imbalance.
US Fed Clouds Rate Cut Outlook:
The US Federal Reserve held interest rates steady for the fifth consecutive meeting, as expected. However, Fed Chair Jerome Powell offered no clear signs of a rate cut in September, saying it was “too soon to tell.”
FII Selling:
Foreign Institutional Investors (FIIs) sold equities worth ₹850.04 crore on Wednesday. Continued FII outflows often put pressure on stock valuations and dampen overall market sentiment.
Weak Global Cues:
Asian markets traded mostly in the red, with losses in South Korea, China, and Hong Kong. Meanwhile, U.S. markets closed mixed overnight, adding to the cautious tone among global investors.
Rupee Under Pressure:
The rupee recovered 14 paise to 87.66 against the U.S. dollar in early trade, likely aided by RBI intervention. However, it remains under pressure following Tuesday’s sharp 89-paise drop—the steepest single-day fall in over three years. A weaker rupee raises import costs and risks widening the trade deficit.
Technical Outlook:
Anand James, Chief Market Strategist at Geojit Financial Services, noted that Nifty faced selling pressure after breaching the 24,900 mark, raising the possibility of a retest of 24,650.
“Post gap-down, upside attempts are possible, with 24,788 as a key pivot,” he said. “A drop below 24,650–24,600 could drag the index to 24,450, though a sharp breakdown is unlikely. Sustaining above 24,788 is positive, but a break past 24,960–25,050 is needed to aim for 25,330.”
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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