Stock Market Crash: Sensex Plunges Over 1,200 Points, Nifty Sinks 400+ Amid Global Selloffs

Indian stock markets witnessed a significant downturn on Friday, mirroring weak trends in Asian markets. Investor sentiment remained subdued due to US tariff concerns and the impending release of India’s GDP data for FY2024-25 and the October-December 2024 quarter.

The BSE Sensex opened 952.39 points (1.28%) lower at 73,660.04, while the Nifty 50 fell 282.45 points (1.25%) to 22,265.05. As the session progressed, both indices extended their losses, with the Sensex dropping over 1,200 points and Nifty slipping more than 400 points.

US Tariffs and Global Market Uncertainty

The uncertainty surrounding US President Donald Trump’s tariff policies has rattled global markets. Trump’s recent announcement of an additional 10% tariff on Chinese imports has raised concerns over a potential escalation in trade tensions.

“Stock markets dislike uncertainty, and uncertainty has been on the rise ever since Trump was elected the US president. The latest tariff announcement confirms that Trump will continue using tariffs as a negotiation tool,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

While a full-blown trade war between the US and China is not fully priced in by the markets yet, investor anxiety has surged, as seen in the sharp rise of the CBOE Volatility Index to 21.13.

Also Read: Stock Market Ends Flat as Cautious Sentiment Prevails; NBFC Stocks See Strong Rally

Inflation Concerns in Japan Add to Market Woes

Another external factor weighing on investor sentiment is inflation in Japan. Recent data revealed that Tokyo’s core consumer prices rose 2.2% in February, remaining above the Bank of Japan’s 2% target. This could lead to further rate hikes by the BoJ, affecting the Yen carry trade and adding to market volatility.

Heavy Selling Pressure in Mid and Small Caps

Mid and small-cap stocks faced significant selling pressure, with the BSE Smallcap index declining 1.93% and the BSE Midcap index dropping 1.94%.

Additionally, foreign portfolio investors (FPIs) continued their heavy sell-off in Indian equities. So far in 2025, FPIs have withdrawn ₹1.137 lakh crore from the domestic market, further pressuring stock prices.

As global uncertainties persist and domestic economic data looms, market volatility is expected to remain high in the near term.