Sensex, Nifty tank nearly 2% on trade war worries; Tech Mahindra plunges 6%
Mumbai, Feb 28 (PTI): Benchmark indices Sensex and Nifty tumbled nearly 2 per cent on Friday, mirroring deep losses in global markets as the latest announcement of additional 10 per cent tariff on Chinese products rattled investors.
The 30-share BSE benchmark Sensex tanked 1,414.33 points or 1.90 per cent to settle at 73,198.10. During the day, it plunged 1,471.16 points or 1.97 per cent to 73,141.27.
Extending losses to the eighth straight day, the NSE Nifty slumped 420.35 points or 1.86 per cent to 22,124.70.
From its record peak of 85,978.25 hit on September 27 last year, the BSE benchmark index is down 12,780.15 points or 14.86 per cent. The Nifty dropped 4,152.65 points or 15.80 per cent from its lifetime high of 26,277.35 hit on September 27, 2024.
Relentless foreign fund outflows and concerns about the US economic outlook made investors jittery, according to analysts.
From the Sensex pack, Tech Mahindra slumped over 6 per cent followed by IndusInd Bank which tanked over 5 per cent.
Mahindra & Mahindra, Bharti Airtel, Infosys, Tata Motors, Titan, Tata Consultancy Services, Nestle and Maruti were also among the major laggards.
HDFC Bank emerged as the only gainer from the pack.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled with deep cuts. European markets were trading mostly lower. US markets ended sharply lower on Thursday.
"The national market experienced a sharp decline amid heightened bearish sentiment largely influenced by weak global cues. The decline was largely triggered by fear of the implementation of 25 per cent tariff on US imports from Canada and Mexico, set to take effect next week, along with an additional 10 per cent tariff on Chinese goods," Vinod Nair, Head of Research, Geojit Financial Services, said.
Adding to market jitters, the potential imposition of tariffs on the European Union has further fuelled uncertainty, he said.
"As investors navigate this volatility, all eyes are on the domestic Q3 GDP data, which could provide vital insights into the economic recovery trajectory and influence market direction," Nair added.
"The market's decline was primarily driven by mounting concerns over a potential global trade war and a decelerating US economy. US President Donald Trump's announcement of a 25% tariff on imports from Canada and Mexico, effective March 4, along with additional proposed tariffs on China, intensified fears of escalating trade tensions.
"This marked the fifth consecutive month of losses for the Nifty-50, the longest losing streak in nearly three decades," Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, said.
The BSE smallcap gauge dropped 2.33 per cent and midcap index tanked 2.16 per cent.
All BSE sectoral indices ended lower. Teck slumped 4.20 per cent, BSE Focused IT tumbled 4.20 per cent, IT (4.13 per cent), telecommunication (4.09 per cent), auto (3.84 per cent), consumer discretionary (2.74 per cent), oil & gas (2.61 per cent) and power (2.29 per cent).
As many as 3,234 stocks declined while 759 advanced and 89 remained unchanged on the BSE.
On the weekly front, the BSE benchmark is down 2,112.96 points or 2.80 per cent, and the Nifty tanked 671.2 points or 2.94 per cent. In February alone, the Nifty is down 1,383.7 points or 5.88 per cent. The Sensex lost 4,302.47 points or 5.55 per cent.
Krishna Appala, Sr. Analyst at Capitalmind Research said that the Indian markets have seen a broad-based decline, with the Nifty 50 down 15.6 per cent from its 52-week high, losing 2.9 per cent in the past week.
The sell-off has been sharper in the broader markets, with Nifty Midcap 150 down 21.1 per cent, Smallcap 250 down 25.6 per cent, and Microcap 250 slipping 26.2 per cent from their highs.
Foreign institutional investors (FIIs) offloaded equities worth Rs 556.56 crore on Thursday, according to exchange data.
Global oil benchmark Brent crude dipped 0.69 per cent to USD 73.53 a barrel.
The BSE Sensex eked out marginal gains of 10.31 points or 0.01 per cent to settle at 74,612.43 on Thursday. The Nifty slipped 2.50 points or 0.01 per cent to 22,545.05, registering its seventh day of decline.
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Speaker UT Khader attends local cricket tournament during Bhatkal visit
Bhatkal: Speaker of the Karnataka Legislative Assembly U. T. Khader visited Bhatkal in Uttara Kannada district on Saturday and attended a local cricket match being played as part of a tournament organised by the Cosmos Sports Centre of Bhatkal.
After attending a programme at Anjuman Hami-E-Muslimeen, Khader proceeded to the Bhatkal Taluka Stadium, where the tournament is underway. He was accompanied by office-bearers of the Cosmos Sports Centre and several local community leaders.
Those present during the visit included President of Majlis-e-Islah Wa Tanzeem and former JD(S) leader Inayathullah Shabandri, Vice President of Tanzeem Atiqur Rahman Muniri, General Secretary Abdul Raqeeb MJ, President of Cosmos Sports Centre Ismail Anjum, Managing Director of Mohtisham Complexes S. M. Arshad, former president of the Bhatkal Muslim Youth Federation Imtiyaz Udyawar, among others.
Addressing players and organisers, Khader extended his best wishes to the participating teams and urged the players to uphold the spirit of sportsmanship. He said such tournaments help promote unity and brotherhood among the youth.
The cricket tournament began on November 21 and will conclude with the final match on December 21. It is being organised as part of the golden jubilee celebrations of the Cosmos Sports Centre.
Cosmos Sports Centre is one of the member clubs of the Bhatkal Muslim Youth Federation and is known for its active role in promoting sports in the town. Apart from sporting activities, the centre is also involved in various social and community initiatives, including efforts to promote education among students.
