Sharp Decline in Stock Market Amidst Trade War Fears: Sensex Crashes 1018 Points, Nifty Closes at 23,071; Investors Suffer ₹10 Lakh Crore Loss.
Closing Bell: US President Donald Trump's warnings about a trade war impacted the Indian stock market. On Tuesday (February 11), the Sensex and Nifty witnessed a significant decline. Weakening global market signals also put pressure on the Indian market.
Sharp Fall in Sensex and Nifty
The BSE Sensex opened marginally higher at 77,384 but soon slipped into negative territory. At the close of trading, the Sensex fell by 1018.20 points, or 1.32%, to close at 76,293.60.
The National Stock Exchange (NSE)'s Nifty 50 also ended lower despite an initial rise, closing at 23,071, down 309.80 points or 1.32%.
Major Reasons for Market Decline
Foreign Investor Sell-off: Foreign Institutional Investors (FIIs) sold equities worth ₹2463.72 crore on Monday, increasing pressure on the market.
Tariffs on Steel and Aluminum in the US: Donald Trump's announcement of a 25% tariff on steel and aluminum imports into the US caused global market turmoil.
Weak Corporate Results: Profit-booking and weak quarterly results led to a 6.8% drop in Eicher Motors shares and a 5% fall in Apollo Hospitals shares.
Top Losers: Zomato, Tata Steel, Reliance Also Plunge
All Sensex companies closed in the red. Zomato saw the steepest decline at 5.24%. Other significant losses were recorded in Tata Steel, Tata Motors, Power Grid, L&T, Bajaj Finserv, Kotak Bank, Hindustan Unilever, ITC, Sun Pharma, TCS, and Reliance shares.
₹10 Lakh Crore Loss for Investors
This decline resulted in substantial losses for investors. The total market capitalization of BSE-listed companies fell to ₹4,08,53,774 crore, compared to ₹4,17,71,803 crore on Monday. This represents a loss of approximately ₹10 lakh crore for investors.
Market Decline Continued from Monday
The market had already witnessed a decline on Monday, with the Sensex falling 548.39 points (0.70%) to close at 77,311 and the Nifty down 178.35 points (0.76%) to close at 23,381.
Future Market Outlook?
Analysts believe that global factors will continue to influence the market. Investor attention will remain focused on US tariff increases, FII selling, and quarterly results. A recovery in global markets could stabilize the Indian market; otherwise, volatility is likely to persist in the near future.
