Indian Shares Drop Amid U.S. Tariff Threats and Trade War

Market Turmoil: Indian shares plunged as traders reacted to U.S. tariffs. The S&P Sensex fell by 1.90% while broader indexes followed suit amid concerns of trade war repercussions and upcoming economic data.

Date: 28-02-2025

AI Rating: 4

Market Reaction
Indian shares experienced a significant downturn on Friday, largely influenced by the announcement of new tariff threats from U.S. President Donald Trump. The imposition of an additional 10 percent tariff on Chinese imports marks a deepening of ongoing trade tensions, potentially impacting investor sentiment and economic growth expectations globally.

Major Index Movements
The S&P BSE Sensex closed down 1,414.33 points, translating to a decline of 1.90%, while the NSE Nifty 50 index fell by 1.86%. This extended the Nifty 50's fall from its September peak to nearly 16%, indicating a serious correction that could be alarming to investors.

Selling Pressure and Sector Performance
With widespread selling across various sectors, the report highlighted that significant losses were seen in key stocks like IndusInd Bank, which fell more than 7%, along with steep declines in Mahindra & Mahindra, Bharti Airtel, Wipro, and Tech Mahindra, each losing between 4-6%. The broad market breadth also reflected a negative trend, with 3,218 shares declining compared to only 776 gains.

Selective Buying in Financials
Despite the overall selling pressure, there was selective interest in financial stocks, with Shriram Finance and HDFC Bank seeing a rise of around 2%. This indicates that while some sectors are under pressure, others may present opportunities for investors looking for stability amidst volatility.

While the report does not provide information regarding Earnings Per Share (EPS), Revenue Growth, Net Income, Profit Margins, Free Cash Flow, or Return on Equity, the overall market conditions following the tariff threat could lead to increased volatility in stock prices. Investors should closely monitor the situation as it unfolds, especially in relation to global economic indicators.

Stocks: INDUSIND M&M BHARTI WIPRO TECHM SHRIRAM HDFC