Sensex tanks 1.2%, Nifty closes below 23,000 amid fears of global slowdown

Major selling was seen in sectors, including pharma, oil & gas, information technology (IT), metal, and auto.

“Markets slumped in sync with the crash in global equities with sectors crashing over 2-6 per cent on broader-based selling. Investors fear Trump’s reciprocal tariff policy will fuel recession and drive inflation in the US going ahead and will also engulf other key economies,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

On Wednesday, US President Donald Trump announced reciprocal tariffs on various trading partners of the US, including India. India faces a 26 per cent hike in tariffs.

“Higher tariffs can stifle export margins and lead to lower production and growth. On the other hand, global inflation is also likely to inch up as countries announce retaliatory tariffs,” said Aditi Gupta, Economist, Bank of Baroda.

The likelihood of retaliatory measures against the US has further heightened uncertainty. US bond yields and oil prices are trending downward, reflecting concerns over potential economic slowdown and increased recessionary risks, said Vinod Nair, Head of Research, Geojit Investments Limited.

“Domestically, while the direct impact of these tariffs is relatively moderate compared to other major economies, it remains more substantial than initially projected,” Nair said.

All sector indices witnessed heavy selling pressure, with Nifty Metal crashing 6.56 per cent and Nifty Pharma falling 4.03 per cent. Nifty Auto lost 2.7 per cent, Nifty Oil&Gas fell 3.78 per cent and Nifty IT diving 3.58 per cent.

“The sharp fall in global markets—particularly in the US—and fresh concerns over potential tariffs on pharma impacted sentiment negatively. However, sustained strength in banking and financial stocks helped limit the overall downside to some extent,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

The broader market also declined sharply, with Nifty Midcap 100 declining 2.91 per cent and Nifty Smallcap 100 tanking by 3.56 per cent.

Major NSE companies that lost the most were Tata Steel (8.43 per cent), Hindalco Industries (8.07 per cent), ONGC (7.07 per cent), Tata Motors (5.94 per cent), Cipla (5.29 per cent), Reliance Industries (3.43 per cent) and Tech Mahindra (3.46 per cent).