The 30-share BSE benchmark tumbled 3,939.68 points or 5.22 per cent to 71,425.01 in early trade. Mirroring the bearish trend in equities, the market capitalisation of BSE-listed firms declined sharply by Rs 20,16,293.53 crore to Rs 3,83,18,592.93 crore (USD 4.50 trillion) during the morning trade. All the Sensex firms were trading lower.
Mumbai: Investors’ wealth eroded sharply by Rs 20.16 lakh crore on Monday morning as the benchmark indices faced heavy drubbing, with the Sensex dropping over 5 per cent, amid a global market meltdown due to growing trade war concerns.
In a bloodbath on the Dalal Street, the stock markets plunged on Monday morning following the global sell-off, as the trade war fear increased amid impending US reciprocal tariffs.
As of 9:55 am, Sensex was down 2,690 points or 3.57 per cent at 72,654 and Nifty was down 881 points or 3.85 per cent at 22,020.
The 30-share BSE benchmark tumbled 3,939.68 points or 5.22 per cent to 71,425.01 in early trade. Mirroring the bearish trend in equities, the market capitalisation of BSE-listed firms declined sharply by Rs 20,16,293.53 crore to Rs 3,83,18,592.93 crore (USD 4.50 trillion) during the morning trade. All the Sensex firms were trading lower.
Along with largecaps, massive selling was also seen in the midcaps and smallcaps. Nifty midcap 100 index was down 2,335 points or 4.61 per cent at 48,310 and Nifty smallcap 100 index was down 1,055 points or 6.73 per cent at 14,620.
Shares of Reliance Industries Ltd (RIL) dropped as much as 7.4% on Monday to a 52-week low of Rs 1,115.55, tracking a global selloff driven by escalating trade tensions and rising recession fears in the U.S.
Shares of Tata Motors on Monday morning tanked nearly 13 per cent after the company-owned Jaguar Land Rover paused vehicle shipments from its facilities in the UK to the US to work out new trading terms in the wake of changes in the tariff structure.
The stock slumped 11.61 per cent to Rs 542.55 — its 52-week low — on the BSE.At the NSE, it tanked 12.72 per cent to hit the 52-week low of Rs 535.75.
On the sectoral front, all indices were in the red. Auto, IT, realty, media, energy and infra were major laggards.
In the Sensex pack, Tata Steel, Tata Motors, Infosys, Tech Mahindra, L&T, HCL Tech, TCS, Reliance Industries, NTPC, Axis Bank, M&M, Kotak Mahindra Bank, IndusInd Bank and M&M were major laggards.
Selling was seen in most Asian markets. Tokyo, Shanghai, Bangkok, Seoul and Hang Seng fell upto 11 per cent.
The US markets witnessed a massive sell-off on Friday due to reciprocal tariffs. The Dow closed by 5.50 per cent down and the technology index Nasdaq down by nearly 5.82 per cent.
Oil prices have been driven sharply lower amid global uncertainties, especially as Saudi Arabia issued its biggest price cut on the commodity in years. Brent crude slipped 2.67 per cent to $63.82 a barrel, while West Texas Intermediate fell 2.69 per cent to $60.31.
Hardik Matalia, Derivative Analyst, Choice Broking said, “On the technical front, the Nifty 50 has formed a bearish candle on the daily chart, signaling selling pressure at key resistance levels. Immediate support is seen at 22,400 and 22,000 for intraday trading, as the index has historically shown stability around these zones.”
“These levels could potentially act as reversal points, offering buying opportunities if supported by favourable price action,” he added.
Tata Steel and Tata Motors dropped over 10 per cent each. Larsen & Toubro, HCL Technologies, Adani Ports, Tech Mahindra, Infosys, Tata Consultancy Services, Reliance Industries and Mahindra & Mahindra were the other big laggards.
In Asian markets, Hong Kong’s Hang Seng index tanked more than 11 per cent, Tokyo’s Nikkei 225 plunged 7 per cent, Shanghai SSE Composite index dropped nearly 7 per cent and South Korea’s Kospi sank over 5 per cent.