New Delhi:
Investors’ wealth tumbled by Rs 7.46 lakh crore in morning trade on Friday, in-tandem with a sharp decline in the domestic equity market, with the benchmark Sensex plunging over 1,000 points following a bearish trend in global equities.
Fresh tariff threats that ignited global trade war fears and relentless foreign fund outflows dented investor sentiment.
The 30-share BSE benchmark gauge tumbled 1,032.99 points or 1.38 per cent to 73,579.44 during morning trade.
Following the sharp decline in equities, the market capitalisation of BSE-listed firms eroded by Rs 7,46,647.62 crore to Rs 3,85,63,562.91 crore (USD 4.42 trillion) in morning trade.
From the Sensex pack, Tech Mahindra, IndusInd Bank, Maruti, HCL Tech, Tata Consultancy Services, Infosys, Mahindra & Mahindra and Titan were the biggest laggards.
Axis Bank, HDFC Bank, Reliance Industries and Adani Ports were the gainers from the pack.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading with deep cuts.
“The US market fell, closing at a five-month low, while US Treasury yields rose following President Donald Trump’s new tariff threats,” Vikas Jain, Head of Research at Reliance Securities, said.
US markets ended sharply lower on Thursday.
According to V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, stock markets dislike uncertainty, and uncertainty has been on the rise ever since Trump was elected the US president.
“The spate of tariff announcements by Trump has been impacting markets and the latest announcement of additional 10 per cent tariff on China is a confirmation of the market view that Trump will use the initial months of his presidency to threaten countries with tariffs and then negotiate for a settlement favourable to the US.
“How China responds to the latest round of tariffs remains to be seen,” Vijayakumar said.
Foreign institutional investors (FIIs) offloaded equities worth Rs 556.56 crore on Thursday, according to exchange data.
Global oil benchmark Brent crude dipped 0.51 per cent to USD 73.66 a barrel.
(Except for the headline, this story has not been edited by The Hindkesharistaff and is published from a syndicated feed.)