Indian equity markets witnessed a sharp selloff on Tuesday as the Sensex plunged over 1,500 points, declining 2% to an intraday low of 71,608. The NSE’s Nifty 50 index mirrored the downturn, crashing more than 450 points, also falling 2% to touch 22,209.
The market rout erased approximately ₹9 lakh crore in investor wealth, signaling significant profit-booking and risk-aversion across sectors. Trading activity remained volatile as domestic and foreign investors reassessed their portfolio positions.
Market analysts attributed the sharp decline to global headwinds, with Trump’s recent speech triggering concerns among investors about geopolitical tensions and potential policy shifts. The speech raised questions about international trade dynamics and economic policies, prompting a flight to safety.
The sharp correction comes after Indian markets had gained ground in recent sessions. The BSE-listed heavyweights and financial stocks witnessed considerable selling pressure, reflecting broader market sentiment.
Investors are closely monitoring global developments and upcoming economic data releases. Analysts suggest the market volatility may continue in the near term as participants await clarity on policy directions and their impact on Indian equities.
Market participants are advised to review their portfolio allocations and risk management strategies amid the ongoing uncertainty.
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