Stock Market Today: Sensex Crashed Over 1400 Pts; Nifty 400 Pts

Market Performance

The Indian stock markets witnessed a sharp decline on February 28, with the Sensex and Nifty experiencing significant losses. The Sensex dropped by 1,420 points, equivalent to a 1.9% fall, closing at 73,192, while the Nifty declined by 418 points, or 1.9%, ending at 22,126. The downturn marked the fifth consecutive month of losses, marking the longest losing streak in almost 29 years.

Broader market indices also suffered, with the BSE Smallcap and BSE Midcap indices tumbling over 2%. Additionally, all 13 major sectoral indices closed in the red, heavily impacting IT and financial stocks, which account for a substantial portion of foreign investor holdings.

Key Developments Impacting Markets

The decline was triggered by renewed trade tensions following the U.S. government's announcement of fresh tariffs. On February 27, the U.S. administration confirmed that a 25% tariff on imports from Mexico and Canada would be effective on March 4. An additional 10% duty was imposed on Chinese imports, bringing the total tariff to 20% due to earlier levies introduced in February. Concerns over a potential economic downturn in the U.S. deepened the market slump, while fears of a prolonged trade dispute unsettled investors, triggering widespread selling pressure across sectors.

Sectoral and Stock Performance

The market witnessed widespread losses across key sectors:

• IT Sector: The IT index suffered the most, plunging over 4% following weak U.S. jobless claims data, which raised fears of economic deceleration. Over the week, the IT index has dropped nearly 8%.
• Banking Sector: The Nifty Bank index fell by 0.8%, with 11 out of 12 constituent stocks closing in the red.
• Other Sectors: Nifty Auto, Nifty FMCG, Nifty PSU Bank, Nifty Healthcare, Nifty Oil & Gas, and Nifty Media indices recorded declines ranging between 2-4%.

Major Stock Movements

• Top Losers: M&M, Bharti Airtel, Wipro, Tech Mahindra, and IndusInd Bank saw 5-7% declines.
• Top Gainers: Hindalco, Trent, HDFC Bank, and Coal India bucked the trend, gaining between 0.3-2%.
• Premier Energies: The stock tumbled nearly 6% as its six-month shareholding lock-in period expired.
• IREDA: Declined by over 7% following its entry into the Futures & Options (F&O) segment.

Global Market Trends

Global markets displayed weakness amid growing trade tensions and economic concerns:

• U.S. Markets: Wall Street ended lower on February 27 following disappointing economic data and a technological sector selloff.
• European Markets: European markets opened lower following the announcement of new U.S. tariffs on the European Union.
• Asia-Pacific Markets: Followed the downward trend, reacting negatively to the U.S. administration’s tariff measures.

Summary

The Indian stock market witnessed a substantial decline driven by concerns over global trade tensions and a slowing U.S. economy. The impact was widespread, with significant losses across all major indices and sectors. Additionally, weak global cues contributed to the negative sentiment, reinforcing investor caution in the short term.