Investors experienced a staggering ₹5 lakh crore loss in just 15 minutes, causing all sectors of the Indian stock market to open in the red during Thursday’s trading session. The worst-hit equities were those of oil companies, with Indian Oil Corporation (IOCL) down 3.12%.
An announcement of US tariffs caused a market crash
Just hours after former US President Donald Trump declared a 25% tariff and other unidentified penalties on Indian imports, there was a dramatic drop. The announcement sparked turmoil in the markets during the early hours of trading.
The Nifty 50 index fell by more than 150 points (-0.60%) to close at 24,704, while the Sensex fell by about 500 points (-0.67%) and was trading at about 80,975.
All sectors were trading in the red during the opening hours as a result of the enormous investment loss, according to The Economic Times.
Energy and Oil Stocks Are at the Top of the Drop
Companies involved in the oil industry were hardest hit by the sell-off. BPCL decreased 2.42%, and IOCL lost 3.12%. Top Sensex-listed companies such as Reliance Industries, Tata Motors, Mahindra & Mahindra, Bharti Airtel, Titan, and State Bank of India (SBI) faced significant losses during the session. Trump’s tariff announcement, which raised questions about the future of Indian exports to the US, came just after this abrupt sell-off.
Additionally, foreign investors retreat
Foreign Institutional Investors (FIIs) sold shares worth ₹850.04 crore on Wednesday, according to exchange data, which increased market pressure.
Sectors Dependent on Exports Could Be Affected
Market analysts predict that industries that mostly depend on exports to the US, such as textiles, medicines, and car parts, will be most affected by the new trade policy.