Sensex Crashes 700 Points Amid Trade War Fears

On February 3, 2025, the Indian stock market took a significant hit. The BSE Sensex plunged 731.91 points (0.94%) to an intraday low of 76,774.05. The broader NSE Nifty fell by 243 points (1.03%) to 23,239.15, breaking the key 23,300 level. This crash resulted from escalating trade tensions after US President Donald Trump imposed tariffs on Canada, Mexico, and China.

Investors are worried about a global trade war, causing increased volatility and a stronger US dollar. The Indian rupee weakened past 87 per US dollar for the first time, tracking losses in other Asian currencies. Concerns about low government spending and modest infrastructure spending announced in the Union Budget added to the market’s problems.

Infrastructure-related stocks faced the most selling pressure, with the sectoral index falling up to 2.5%. Analysts warn that markets may remain volatile in the near term as global uncertainties increase and risk appetite decreases.