Indian stock market, which has been under pressure from sellers and has been going down for seven consecutive days, suffered yet another blow on Friday after US President Donald Trump announced the imposition of reciprocal tariffs on Indian goods.
Talking to reporters in the Oval Office with PM Modi sitting beside him, he announced, “No more or no less… They charge us a tax or tariff, and we charge the exact same tax or tariff… nobody knows what that number is… you go to an individual country and see what they are charging us.”
Hours before Indian Prime Minister Narendra Modi arrived in the US, President Trump signed an executive order instructing the US Trade Representative and the Commerce Secretary to propose new tariffs on a country-by-country basis.
BSE Sensex Plummets
Reacting to the announcement made by the US President, the BSE Sensex, fell to a low of 75,440 in intra-day deals. The index registered a loss of 628 points at 75,510 as of 2 PM.
The BSE benchmark index shed 3,073 points in the last eight straight trading sessions.
Adani Ports became the top loser as it came down nearly 4%. Among other Sensex 30 shares, Sun Pharma, UltraTech Cement, IndusInd Bank, NTPC and Mahindra & Mahindra were the major losers. The market was hit so hard that only five out of the Sensex 30 stocks were seen holding gains in trade on Thursday.
NSE Index Nifty 50 Falls 4%
The NSE index Nifty 50 was not different as it went down to an intra-day low of 22,774. This was the lowest point since the Lok Sabha Election result day low. The Nifty has fallen 4% in the last eight days.
As the share prices plummeted for eight days, the BSE market capitalisation fell below the $4 trillion mark for the first time in nearly 14 months. The total market value stood at $3.98 trillion on Friday.
FPIs Offload Stocks Worth Rs 97,000
One of the main reasons of the mayhem in the market was that the
Foreign portfolio investors (FPIs) have offloaded stocks worth more than Rs 97,000 crore in the first six weeks of 2025.
Though Donald Trump offered to sell F-35 stealth fighter jets and crude oil and natural gas to India worth billions of dollars and expressed hope that the bilateral trade may touch $500 billion by 2030, the market could not come out of his announcement on reciprocal tariffs.
