Equity benchmarks slide 1% as US tariff uncertainty rattles markets

Indian equities log steepest one-day fall in over four months as US tariff uncertainty rattles markets and wipes out ₹7.7 trillion in value

Indian equity benchmarks Sensex and Nifty posted their steepest one-day drop in more than four months amid heightened uncertainty over US trade tariffs. On Thursday, the Sensex closed at 84,181 — falling 780 points, or 0.9 per cent, from the previous session. The Nifty ended at 25,877, down 264 points, or 1.01 per cent. Both indices registered their largest single-day declines since August 26, 2025. 

The combined market capitalisation of all BSE-listed companies fell ₹7.7 trillion to ₹472.3 trillion. Out of all stocks trading on the BSE, 3,224 declined while 992 advanced, resulting in an advance-decline ratio of 0.41, the weakest since December 8, 2025. 

 

Investors were rattled after US Senator Lindsey Graham said on Wednesday that US President Donald Trump had greenlit a bill to allow sanctions targeting countries doing business with Russia, and that the bill could be put to a vote as early as next week. The bill would give Trump the authority to impose a tariff of up to 500 per cent on imports from countries, including India, doing business with Russia’s energy sector, according to reports. The US had earlier accused India of fuelling the Russian war machine because of its oil purchases and imposed a 50 per cent tariff last year.

 

Meanwhile, the US Supreme Court’s ruling on the legality of the tariffs is expected this week.

 

“The US Supreme Court decision will be keenly tracked by investors. It is uncharacteristic of Trump to accept meekly if the court strikes down the tariffs. The level of uncertainty has risen dramatically,” said UR Bhat, co-founder of Alphaniti Fintech.

 

Foreign portfolio investors (FPIs) sold shares worth ₹3,367 crore, making them net sellers for the session. In contrast, domestic institutional investors were net buyers, purchasing shares totalling ₹3,701 crore.

 

“Domestic markets extended losses as sentiment turned cautious amid renewed concerns over US tariffs and persistent FII outflows. This overshadowed optimism around earnings growth. Broad-based selling was led by metals, oil & gas, and IT stocks. Metal shares declined on profit booking after a retreat in global prices. In the near term, markets are expected to remain cautious and trade in a range-bound manner. Influences include third quarter earnings and developments on US tariffs," said Vinod Nair, head of research at Geojit Investments.

 

Reliance Industries dropped 2.25 per cent on Thursday, making it the biggest single contributor to the Sensex's decline. Larsen & Toubro fell 3.4 per cent. The latter, which derives significant revenue from government projects, declined amid reports that the government may remove restrictions on Chinese firms bidding for government contracts.