Sensex and Nifty saw a sharp decline of almost 2% by the second half of February 28, as a wave of broad-based selling gripped the market.
Investors were spooked by fears of an escalating global trade war and concerns over a slowing U.S. economy, News.Az reports, citing foreign media.
All 13 major sectoral indices traded deep in the red, while the BSE Smallcap and BSE Midcap indices bore the brunt, sliding nearly 3 percent each. IT and financial stocks, where foreign investors hold significant stakes, accounted for half of Nifty 50’s losses.
Trump announced on February 27 that his proposed 25 percent tariffs on Mexican and Canadian goods would take effect on March 4, alongside an additional 10 percent duty on Chinese imports, citing the continued flow of deadly drugs into the U.S. These new tariffs will stack on top of the 10 percent levy imposed on February 4 over the fentanyl crisis, effectively raising the total duty on Chinese imports to 20 percent.
By 1.40 PM, the Sensex had plunged 1,400 points, or 1.9 percent, to 73,201, while the Nifty shed 430 points, or 1.9 percent, to 22,115. On the NSE, the breadth of the market painted a starkly negative picture, with just 210 stocks advancing against a staggering 2,393 declining. The benchmarks are headed for their fifth straight month of losses—the longest losing streak in 29 years. A combination of concerns over slowing economic growth, fading earnings momentum, Trump’s trade policies, and relentless selling by foreign investors has dragged the benchmarks down 18 percent from their record highs in late September.
Among Nifty 50’s biggest losers, Titan, M&M, Wipro, Tech Mahindra, and IndusInd Bank tumbled 5-6 percent. Meanwhile, Shriram Finance, HDFC Bank, and Coal India emerged as the session’s top gainers, climbing 1-2 percent.
Among individual stocks, Premier Energies slumped almost 6 percent as its six-month shareholding lock-in period expired. Shares of IREDA saw an even steeper decline, dropping more than 7 percent as the stock debuted in the Futures & Options (F&O) segment at the start of the March series. The sharp drop follows a strong run, with gains in four of the last five trading sessions.
Global cues remain weak, with Wall Street closing lower on February 27 after disappointing U.S. economic data and a tech-sector selloff. European markets opened in the red today, rattled by Trump’s renewed tariff threats against the EU. Asia-Pacific markets followed suit, tumbling today after Trump confirmed that tariffs on imports from Mexico and Canada will take effect next week.
