Mounting concerns over the economic fallout of US President Donald Trump’s 50 per cent tariffs on India, coupled with his signals that trade negotiations will remain on hold until the dispute is resolved, have hit the Indian stock market hard.
A wave of sharp sell-off engulfed the Indian stock market on Friday, August 8, dragging the market benchmarks down by 1 per cent each.
The Sensex suffered a loss of 765 points, or 0.95 per cent, to close at 79,857.79, while the Nifty 50 dropped 233 points, or 0.95 per cent, to close at 24,363.30.
The overall market capitalisation of BSE-listed firms dropped to ₹440 lakh crore from ₹445 lakh crore in the previous session. Thus, the massive across-segments sell-off made investors poorer by about ₹5 lakh crore in a single session.
On a weekly scale, the benchmark indices extended their losses for the sixth consecutive week. For the week ended August 8, the Sensex and the Nifty 50 each lost nearly 1 per cent.
Indian stock market: 10 key highlights from the day
1. Why did the Indian stock market crash today?
Trump’s tariffs have dealt a serious blow to already fragile market sentiment. Unimpressive earnings, stretched valuations, and massive foreign capital outflow remain persistent concerns.
Trump’s latest tariffs and aggressive tone have spooked investors. Some experts believe the 50 per cent tariff may shrink India’s GDP by 1 per cent.
“The Indian equity market exhibited downward movement, closing at a three-month low amid growing concerns over the impact of US tariffs on Indian exports. FIIs remained net sellers, intensifying the pressure on domestic indices,” Vinod Nair, Head of Research, Geojit Investments, observed.
“Global financial institutions have begun revising India’s economic outlook downward, citing the adverse effects of the ongoing tariff concern. Growth projections for 2025 and 2026 have been lowered, reflecting heightened uncertainty surrounding India’s trade and macroeconomic environment,” Nair added.
(This is a developing story. Please check back for fresh updates.)
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