Sensex Slides Over 2,300 Points in Six Days Amid Global Trade Worries and Tariff Shocks

The Indian stock market has been on a steep decline, with benchmark index Sensex losing over 2,300 points in just six sessions. Investor sentiment has remained fragile as a string of global shocks and trade uncertainties weigh heavily on the market.

This week, the market saw intense volatility as the impact of rising tariffs and regulatory changes abroad rippled through export-oriented sectors and domestic indices.

Market Performance: Heavy Selling and Wealth Erosion

The sustained sell-off has led to significant erosion of investor wealth. Over the six-day period:

• Market capitalization of all listed companies dropped from ₹465.73 lakh crore (September 18) to ₹453.29 lakh crore.
• Indian investors collectively lost around ₹12.44 lakh crore in notional wealth.

Export-driven sectors like IT services, pharmaceuticals, textiles, and gems & jewellery have been particularly affected.

Global Trade and Tariff Pressures

Several international developments triggered the market downturn:

• The U.S. announced 50% tariffs on select Indian exports, including a 25% reciprocal levy and a 25% additional penalty on crude imports.
• H-1B visa fees for new renewals were hiked dramatically, affecting Indian IT services companies with global operations.
• Pharma exports faced a 100% tariff on branded and patented products, further pressuring export-linked equities.

These measures have compounded investor concerns, as key revenue streams for India’s largest sectors face regulatory and tariff headwinds.

Sectoral Impact: IT and Pharma Bear the Brunt

The IT sector, a major component of the Sensex, saw sharp declines as visa-related restrictions and tariffs raised operational costs for companies.

• Pharma stocks were hit hard by the 100% tariff announcement.
• Export-heavy manufacturing sectors like textiles, gems, and seafood also saw downward pressure.

The selling was further amplified by foreign portfolio investors, who have offloaded ₹1,44,085 crore in Indian stocks this year, keeping overall market gains in check.

Range-Bound Trading and Market Resilience

Despite these shocks, the market has shown resilience in pockets, remaining range-bound over the past 18 months. The Nifty 50 frequently faces resistance near the 25,500 level, with short-term global events often triggering corrective phases.

• Tariff and trade tensions have primarily influenced sentiment and short-term movements.
• Domestic reforms like GST cuts have yet to fully translate into corporate earnings, leaving the market sensitive to external cues.

What Lies Ahead: Volatility and Caution

In the near term, the Sensex is likely to remain under pressure, with volatility expected to stay high. Key factors shaping the market mood include:

• Global trade developments, particularly India-U.S. negotiations.
• Earnings performance of major export-oriented and domestic companies.

A prolonged slowdown in trade talks or additional protectionist measures could deepen the correction, impacting broader market risk appetite and domestic sectors such as banking and consumption.

Summary: A Market on Edge

The recent six-day slide in the Sensex underscores how sensitive investor sentiment has become to global shocks.

• ₹12.44 lakh crore lost in market value highlights the scale of the correction.
• Export-linked sectors remain vulnerable amid tariffs and regulatory changes.
• Domestic reforms and earnings recovery will be critical to stabilizing the market.

For now, the market is navigating a delicate balance between global headwinds and domestic fundamentals, keeping traders and investors on alert.