Markets In Turmoil, Sensex Under 74k, Nifty Over 100 Points Down As US-China Trade War Escalates

As markets progressed, around 9:20 AM, the Sensex slipped further 300 points and stood under the 74k mark at 73,920. Meanwhile, the Nifty tanked 127 points to inch closer to 22,400. 

In the broader markets, the Nifty Microcap 250 dominated in red and plunged 1 per cent in the session. Sectorally, the IT index drove the losses and plummeted 2.23 per cent.

Source : Freepik

Indian benchmark indices opened Wednesday on a dampened note as escalating trade conflicts in the world weighed down on investors sentiment. The BSE Sensex took a hit of over 100 points in the pre-open session at 9:14 AM and tested 74,100. Meanwhile, the NSE Nifty50 slipped 76 points to trade under 22,500. 

As markets progressed, around 9:20 AM, the Sensex slipped further 300 points and stood under the 74k mark at 73,920. Meanwhile, the Nifty tanked 127 points to inch closer to 22,400. 

On the 30-share Sensex, PowerGrid, Nestle, Hindustan Unilever, M&M, and Tata Motors emerged among the gainers in the session so far. Meanwhile, the laggards included Tech M, Infosys, Tata Steel, HCL Tech, and TCS.

In the broader markets, the Nifty Microcap 250 dominated in red and plunged 1 per cent in the session. Sectorally, the IT index drove the losses and plummeted 2.23 per cent.

Why Are Markets Falling Today?

Asian markets across the board are reeling with the heightened panic among investors. US President Donald Trump went ahead with his tariff aggression and imposed 104 per cent duties on China.

This move followed China refusing to back down from its retaliatory tariffs imposed on American shipments. The Asian superpower termed the US move ‘blackmail’ and refused to give in to the US’ pressure tactics.

Notably, Trump earlier set a deadline for Tuesday noon urging Beijing to slash the 34 per cent tariffs it imposed on US after Trump announced the duties on the Asian nation originally.

As a result, analysts are now more concerned about the global trade war and the possibility of a recession in the American economy is inching closer to reality, experts pointed out. 

Global Markets And Oil Prices

The market reaction was swift and widespread. Japan's Nikkei crashed nearly per cent, eroding the 6 per cent gains made in the previous trading session. Meanwhile, Hang Seng plunged 1.67 per cent, Kospi declined over 1 per cent, and Taiwan index tanked close to 5 per cent.

These developments also led to a sharp fall in crude oil prices on Wednesday, which hit their lowest level in more than four years. Concerns increased around the possible economic fallout of the trade tensions between US and China.