The Sensex tumbled by 1.5%, closing at 75,911 and the Nifty fell by 1.33%, closing at 23,031 Investor sentiment took a hit due to global and domestic triggers. Key factors included US President Trump’s aggressive tariff stance on BRICS nations, weaker-than-expected Q3 corporate earnings, and persistent foreign institutional investor (FII) selling.
Trump announced plans to impose 100% tariffs on nations moving away from the US dollar for global trade. BRICS nations like India felt vulnerable, contributing to market jitters. Additionally, the Bank of Japan hinted at a potential interest rate hike, adding to concerns about tightening liquidity and its effects on emerging markets like India. Mixed earnings reports further dampened investor confidence.
Banking stocks, particularly ICICI Bank and HDFC Bank, faced declines, contributing to the overall negative sentiment. The India VIX, an index measuring market volatility, rose by over 5%, indicating increased market nervousness.
Analysts are closely monitoring policy changes and economic indicators. The upcoming Union Budget added another layer of uncertainty, with investors adopting a cautious approach. Despite the turmoil, metal stocks saw some gains, but it wasn’t enough to offset the broader market decline.
