Indian stock markets witnessed a sharp sell-off on Thursday, with benchmark indices ending deep in the red amid renewed concerns over global trade tensions. The Nifty 50 plunged 220 points, while the Sensex dropped nearly 600 points as investors reacted nervously to reports of a possible 500 percent tariff threat on Indian goods by US President Donald Trump.
Markets opened on a weak note and extended losses through the session as selling pressure intensified across sectors. Both frontline and broader indices struggled, reflecting widespread risk aversion among investors.
All major sectoral indices traded in negative territory. Metal stocks bore the brunt of the sell-off, declining sharply on fears that higher tariffs could hurt exports and global demand. Oil and gas stocks also came under heavy pressure as concerns grew over potential disruptions to international trade and pricing dynamics.
Energy, information technology, and public sector enterprise (PSE) stocks followed suit, registering notable losses. IT stocks, which are particularly sensitive to US policy developments, saw sustained selling throughout the day. Energy and PSE stocks weakened amid broader market pessimism and profit booking.
Market participants remained cautious, citing uncertainty over global trade policies and their possible impact on India’s export-driven sectors. Analysts noted that even the possibility of steep tariffs has been enough to unsettle markets, especially at a time when global equities are already facing volatility due to geopolitical and economic concerns.
The broader markets mirrored the weakness in benchmarks, with midcap and smallcap stocks also ending lower. Market breadth remained firmly negative, with declining stocks significantly outnumbering advancing ones on the exchanges.
Experts advise investors to stay cautious in the near term as global cues, particularly developments related to US trade policy, continue to influence market direction. Volatility is expected to remain elevated until there is greater clarity on the issue.
