Indian stock markets experienced a sharp decline on Friday, with the Sensex dropping by 765 points to close at 79,858, marking its first close below the 80,000 mark in three months. The Nifty also suffered, shedding 233 points to end at 24,363. This slump was driven by investor concerns over the potential impact of US tariffs on Indian companies and the broader economy, along with ongoing foreign fund outflows.

After initially brushing off the implications of higher US tariffs, the market saw significant selling pressure as fears mounted that the tariff hikes would harm Indian businesses and economic growth. Analysts, including Prashanth Tapse from Mehta Equities, warned that the US tariffs, set to penalize Indian goods, would likely hurt India’s growth prospects and fuel inflation, further dampening investor sentiment.

Sensex Stocks Hit Hard

Among the biggest losers, Bharti Airtel saw a 3.4% drop, largely influenced by a block deal, while Tata Motors and Kotak Bank followed with losses of 2.2% and 2.1%, respectively. The day’s sell-off wiped out Rs 4.7 lakh crore from the market capitalization of the BSE, leaving it at Rs 440.6 lakh crore.

Gold Reaches Record High

Meanwhile, gold futures surged to an all-time high of $3,534 per ounce in the US, driven by uncertainty around the potential impact of US import tariffs on gold bars. As fears over the tariffs continued to grow, gold emerged as a safe-haven asset, rising over 1% on Friday.

The day’s market movements reflected the growing concern among investors over the economic fallout from rising tariffs, leading to heightened market volatility.

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