Sensex, Nifty Crash Amid Trump's Tariff Threats
(RTTNews) - Indian shares plunged on Friday as traders grappled with U.S. President Donald Trump's new tariff threats.
China vowed to take "all necessary countermeasures and defend its legitimate rights and interests" after Trump said he would impose an additional 10 percent tariff on Chinese imports, intensifying a brewing trade war between the world's two largest economies.
The additional tariff will come into effect on Tuesday alongside sweeping 25 percent levies on Canadian and Mexican imports.
If is feared that the U.S. trade war may hurt global growth, worsen inflation and possibly spark recessions in some countries.
Traders also awaited India's Q3 GDP data and the release of the Federal Reserve's preferred inflation gauge, the PCE price index, for near-term market direction.
With selling seen across the board, the benchmark S&P BSE Sensex ended the session down 1,414.33 points, or 1.90 percent, at 73,198.10.
The broader NSE Nifty 50 index closed at 22,124.70, down 420.35 points, or 1.86 percent, from its previous close - extending its fall from the September 2024-peak to nearly 16 percent.
The BSE mid-cap and small-cap indexes lost 2.2 percent and 2.3 percent, respectively. The market breadth was negative, with 3,218 shares declining while 776 shares rose and 88 shares closed unchanged.
IndusInd Bank led losses to close more than 7 percent lower while Mahindra & Mahindra, Bharti Airtel, Wipro and Tech Mahindra fell 4-6 percent.
Financials witnessed selective buying, with Shriram Finance and HDFC Bank rising around 2 percent each.
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