Sensex, Nifty fall over 1% amid Trump tariff issues

The Sensex dropped by 817.09 factors reaching an intraday low of 74,493.97. In the meantime, the broader NSE Nifty fell by 247.55 factors, or 1.08 per cent, to 22,548.35.

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The Sensex and Nifty indices fell over 1 per cent in early buying and selling on Monday (February 24), following weak international cues and rising issues over US President Donald Trump’s threats of reciprocal tariffs.

The Sensex dropped by 807.67 factors, or 1.07 per cent, reaching an intraday low of 74,503.39.

In the meantime, the broader NSE Nifty fell by 247.55 factors, or 1.08 per cent, to 22,548.35.

Ongoing promoting strain from overseas institutional traders (FIIs) added to the damaging market sentiment, compounding home worries.

All 13 main sectoral indices had been within the crimson, with monetary and IT shares experiencing vital losses.

Why did the Indian inventory market crash?

Trump tariffs: Markets are on edge as a consequence of President Donald Trump’s risk to impose reciprocal tariffs on India and China.In the course of the swearing-in of Commerce Secretary Howard Lutnick on Friday, Trump introduced that his administration would “quickly” implement these tariffs. He said, “No matter an organization or a rustic, reminiscent of let’s say India or China or any of them, no matter they cost, we need to be honest … so reciprocal.”
Enticing China shares: The sharp surge in Chinese language shares is one other near-term headwind. “The ‘Promote India, Purchase China’ commerce might proceed for a while since Chinese language shares proceed to be engaging,” mentioned Dr. V Okay Vijayakumar, Chief Funding Strategist, Geojit Monetary Providers.
Continued FII promoting: Overseas Institutional Traders (FIIs) have continued their promoting development. On Friday (February 21), offloading equities valued at Rs 3,449.15 crore. This has escalated the whole withdrawals for the month to over Rs 23,710 crore. Because of this, the cumulative outflows for 2025 have surpassed Rs 1 lakh crore, attributed to ongoing issues about international commerce, in line with Moneycontrol.
Concern over earnings progress: Reuters quoted Sunny Agrawal, fairness analyst at SBICAPS Securities, as saying that the underperformance seen in Indian equities was primarily as a consequence of underlying weak sentiment. This in flip is attributed to issues over truly fizzling out of earnings progress.