Sensex tanks 849 pts, Nifty ends at 24,712 as U.S. tariff deadline kicks in; ₹6 lakh crore wiped out

Indian share market witnessed sharp selling on Tuesday as the deadline for the U.S. to impose 50% tariffs on Indian goods came into effect, triggering broad-based selling across indices. The BSE Sensex slumped 849 points to close at 81,198, while the Nifty settled 256 points lower at 24,712, led by realty, pharma, and IT stocks.

During the session, the 30-share Sensex declined 945 points, or 1.16%, to hit an intraday low of 80,686. The Nifty50 dropped 278 points, or 1.1%, to slip to day’s low of 24,690.

The broader markets were worst hit, with the Nifty MidCap and the Nifty SmallCap indices falling 1.6% and 2%, respectively.

The sell-off wiped out investors' wealth by over ₹6 lakh crore as the overall market capitalisation of BSE-listed firms dropped to nearly ₹449.4 lakh crore from ₹455.41 lakh crore at the end of the trade in the previous session.

Top gainers and losers

On the BSE Sensex pack 25 out of 30 stocks ended in red as investors remained wary of the trade impact of higher tariffs and awaited clarity on potential negotiations between the two countries.

Sun Pharma was the top loser, slipping 3.40% to ₹1,600.45. Tata Steel followed with a 2.88% decline, while Bajaj Finance, Trent, and Mahindra & Mahindra shed between 2% and 2.7%.

Index heavyweights Reliance Industries , Axis Bank, and Larsen & Toubro were among notable losers, each losing over 1.5%.

On the other hand, FMCG major Hindustan Unilever (HUL) emerged as the top gainer on the Sensex, rising 2.38% to close at ₹2,692.10. Maruti Suzuki India also added strong momentum with a 1.85% gain at ₹14,725.50, while ITC , TCS , and UltraTech Cement advanced 0.93%, 0.49%, and 0.19%, respectively.

Among sectors, the Nifty Realty index was the top laggard, falling 2.24%. This was followed by the Nifty Pharma, PSU banks, and metals, which declined in the range of 1.6% to 1.9%. On the other hand, FMCG was the only gainer in an otherwise weak market, with the Nifty FMCG index closing 0.91% higher, aided by defensive buying.

Markets turn cautious ahead of U.S. tariff deadline

Domestic market sentiment turned cautious ahead of the U.S. penalty tariff deadline, which expires tomorrow. Adding to the pressure, the persistent depreciation of the rupee raised concerns over foreign institutional inflows, said Vinod Nair, Head of Research, Geojit Investments.

“Investors also remained watchful of the government’s proposed GST rate revisions and potential sector-specific relief measures to cushion industries hit by higher tariffs,” he added.

The rupee extended its weakness against U.S. dollar, slipping 0.18 to 87.75, as fresh pressure mounted after the United States imposed an additional 25% tariff, raising the total levy on Indian goods to nearly 50%.

Technically, the Nifty slipped below its immediate support at the 20-day exponential moving average (20-DEMA) and the banking index breached the critical base around 54,900, indicating further downside risks.

The Nifty index is likely to fill the recent gap and retest its medium-term moving average near 24,600, said Ajit Mishra – SVP, Research, Religare Broking. He advised traders to realign their positions accordingly.

Going ahead, export-oriented sectors may continue to face selling pressure on any uptick, while domestic demand-driven segments like FMCG and consumer discretionary could offer relative stability. Key triggers to monitor include foreign fund flows, global market trends, and any policy measures aimed at cushioning trade-related concerns, he said.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)