NSE Nifty fell 1.5%, or 345.65 points, to finish at 22,904.45. BSE Sensex dropped 1.2%, or 930.67 points, to 75,364.69. The slump wiped out ₹10 lakh crore in market value Friday.
US markets were down 4-5% at 23:50 IST Friday after China announced retaliatory tariffs and export curbs on critical materials. “The big selloff in the US has triggered a global risk-off sentiment,” said Mahesh Patil, CIO, Aditya Birla Sun Life AMC. “The probability of US recession is adding to global growth concerns… bilateral negotiations could lead to easing of some of the tariffs in the coming weeks.”
‘More Short-term Turmoil Expected’
US Treasury yields dropped below 4% on Friday for the first time since October as fears of a recession sparked a rush to safety. Uncertainty over the impact of the US-China trade war sent oil prices tumbling. Brent crude futures were down 6.8% to $65.35 a barrel “The global markets are in a funk because of the sharp fall in the US markets, downgrades on economic forecasts and with China and the European Union expected to retaliate,” said Aashish Somaiyaa, CEO, WhiteOak Capital AMC.
In Asia, China, Hong Kong, Taiwan and Indonesia markets were shut. Japan dropped nearly 2.8%, Thailand plunged 3.6% and Vietnam declined 1.8%, while South Korea was down 0.9%.
“Despite being relatively better positioned than its Asian peers like China, Taiwan and Bangladesh, Indian markets have declined because the tariff war is heating up with retaliatory moves by other nations,” said Patil. The drop in the Sensex and Nifty was cushioned by the resilience in blue chip lenders such as Bajaj Finance, HDFC Bank and ICICI Bank, which rose between 0.5% and 1.5%. The Bank Nifty index ended 0.2% lower. The broader market, however, lacked any such support with the Nifty Mid-cap 150 index and the Small-cap 250 index tumbling by 2.9% and 3.3%, respectively. Out of the 4,076 shares traded on the BSE, 1,029 advanced, while 2923 declined. The Nifty Metal Index slumped 6.6% on Friday, while the Pharma and IT indices witnessed a fall of around 4% each. The Nifty Realty Index tumbled 3.6%, and the oil & gas, healthcare, consumer durables and auto indices declined around 2-4%. Foreign portfolio investors (FPIs) sold shares worth a net Rs 3,484 crore on Friday. Their domestic counterparts also sold shares worth Rs 1,720 crore. In April, overseas investors have sold equities worth over Rs 14,500 crore.
