Stock market bloodbath: Sensex tank over 1500 pts amid tariff fears
Posted by Nilesh waghela
Mumbai: Indian equity markets witnessed a massive sell-off on Tuesday amid heightened global volatility ahead of the anticipated US reciprocal tariff announcement on April 2. The benchmark indices, Sensex and Nifty50, ended lower by over 1.5 per cent each in the first trading session of the financial year 2025-26 (FY26).
The Sensex settled at 76,024.51, down 1,390.41 points or 1.80 per cent, and the Nifty50 ended at 23,165.70, down 353.65 points or 1.5 per cent. From the broader basket, the Midcap and Smallcap indices settled down by about 0.86 per cent.
HCL Technologies, Bajaj Finserv, HDFC Bank, Shriram Finance, Bharat Electronics were among major losers on the Nifty, while gainers included IndusInd Bank, Trent, Bajaj Auto, Jio Financial, HDFC Life.
The sell-off was more pronounced across the sectoral front, as barring media and oil & gas, all other sectoral indices on the NSE settled in the red.
The IT sector was among the hardest hit due to its substantial exposure to the US market, and real estate stocks fell following Maharashtra's upward revision of ready reckoner rates, which affect property valuations. The Nifty Realty and IT indices settled lower by 3.1 per cent and 2.45 per cent, respectively.
Vinod Nair, Head of Research at Geojit Investments, believes that investors are eagerly awaiting the specifics of these tariffs while also keeping a close eye on ongoing negotiations for a potential Indo-US trade agreement. Rising oil prices, he said, has further dampened market sentiment.
"Despite the short-term volatility related to tariffs, positive domestic factors such as an expected recovery in earnings growth, potential interest rate cuts by the RBI, and moderation in valuations are likely to provide stability and support for investors," said Nair.
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