Market Mayhem: Sensex and Nifty Plunge Amid Escalating Trade Tensions

Indian stock markets faced a steep downturn as Sensex and Nifty fell nearly 2% each amid escalating global trade tensions. The declines followed U.S. President Donald Trump's tariff announcements, which have spooked investors. Domestic economic challenges further exacerbated market pressures.

The Indian stock market endured a significant setback on Friday, with both the Sensex and Nifty indices plummeting by nearly 2% each. At 1:57 p.m., Sensex recorded 73,242.90 points, a drop of 1,369.53 points or 1.84%, while Nifty stood at 22,137.15 points, down 407.90 points or 1.81%.

The market downturn is driven by heavy selling activities amid rising fears of a global trade war. U.S. President Donald Trump's recent announcement of imposing a 25% duty on imports from Canada and Mexico, effective from March 4, alongside a newly proposed 10% tariff on Chinese imports, fueled these concerns.

Trump's aggressive trade policy has raised uncertainties, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He remarked that Trump's tariff threats aim to secure favorable trade terms for the U.S. China's potential countermeasures and the ongoing foreign fund exodus have added to investor anxiety. The Sensex has dropped over 12,000 points from its peak, illustrating the market's volatility and investor caution.