Markets Crash to 7-Month Low: Investors Lose ₹7 Lakh Crore Amid Global Concerns

Markets Crash : Indian equity markets were dealt a huge blow on Tuesday as both the Sensex and Nifty touched a seven-month low due to global uncertainties and continuous foreign fund outflows. Wealth worth ₹7 lakh crore simply evaporated before investors’ eyes as a broad-based selloff gripped markets.

The 30-share BSE Sensex tumbled 1,235 points or 1.60% to close at 75,838.36. In intraday trade, the index fell as much as 1,431 points to hit a low of 75,641.87. Meanwhile, the broader NSE Nifty slipped 320 points or 1.37% to close at 23,024.65, a level last seen on June 6, 2024. The index briefly touched an intraday low of 22,976.85, shedding 367 points.

Heavyweights like ICICI Bank and Reliance Industries led the decline, pulling the indices into the red. Profit booking and high valuations in sectors like technology and consumer goods also added to the selloff.

Markets Crash : Investors Lose ₹7 Lakh Crore

Investor sentiment was further dampened by global concerns over potential tariff policies from the new US administration. Market uncertainty stemmed from President Donald Trump’s unclear stance on economic measures. While Trump initially indicated imposing steep tariffs on imports from Canada, Mexico, and China, his first-day directive only instructed federal agencies to address Americans’ cost of living, leaving policy specifics ambiguous.

Market expert Justin Khoo highlighted that the lack of definitive action on tariffs left global investors cautious. Similar volatility was observed in 2018 when US tariffs on steel and aluminum disrupted markets, though they gradually recovered as investors adapted to the new norms.

Adding to the market’s woes, the Q3 earnings season has disappointed investors. After lackluster performances in Q1 and Q2, the December quarter results have failed to meet expectations, further souring market sentiment.

While the current market turmoil has rattled investors, analysts believe that Indian markets have historically displayed resilience in the face of global challenges. However, the near-term outlook will depend on developments in US trade policies, global economic trends, and domestic corporate earnings.

Investors are advised to exercise caution and monitor global and domestic cues closely as markets navigate through this volatile phase.