Sensex Nifty slide nearly 2% amid trade war fears

The domestic share market indices declined by nearly 2 percent on Friday, weighed down by major losses in banking and IT sectors, as investors remained cautious ahead of key GDP data and  renewed tariff statements from U.S. President Donald Trump. The fall led to a loss of Rs 8.8 lakh crore in market value, according to information. At close The Sensex was down 1,414.33 points or 1.90 percent at 73,198.10, and the Nifty was down 420.35 points or 1.86 percent at 22,124.70. About 434 shares advanced, 3091 shares declined, and 70 shares unchanged.
On the sectoral front, IT index led the fall dropping over 4 percent, followed by Nifty Auto and Nifty Media indices each declined more than 3.4 percent, while the Nifty Consumer Durables index lost 3.2 percent. Nifty Oil & Gas, Metal, and FMCG indices each fell by 2.4 percent, while Pharma and Realty indices declined nearly 2 percent, according to information. BSE MidCap, SmallCap lose over 2.2%.
Rupee Close:
On 28 Feb'25,the Indian rupee depreciated 28 paise to close at 87.46  against the U.S. dollar on Friday (February 28, 2025), as the strength of the American currency and a negative trend in domestic equities dented investor sentiments. Forex traders reportedly stated the ongoing uncertainty surrounding tariff imposition by the U.S. has left financial markets in flux. Moreover, the tariff chaos has injected volatility and uncertainty into the U.S. Dollar Index.
Expert Outlook:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying the national market experienced a sharp decline amid heightened bearish sentiment largely influenced by weak global cues. The decline was largely triggered on fear of the implementation of 25% tariff on U.S. imports from Canada and Mexico, set to take effect next week, along with an additional 10% tariff on Chinese goods. Adding to market jitters, the potential imposition of tariffs on the European Union has further fuelled uncertainty. As investors navigate this volatility, all eyes are on the domestic Q3 GDP data, which could provide vital insights into the economic recovery trajectory and influence market direction.

(Business Correspondent)