Benchmark indices Sensex and Nifty tumbled nearly 2 per cent on Friday, mirroring deep losses in global markets after the latest announcement of additional 10 per cent tariff on Chinese products rattled investors.
The 30-share BSE benchmark Sensex tanked 1,414.33 points or 1.90 per cent to settle at 73,198.10.
During the day, it plunged 1,471.16 points or 1.97 per cent to 73,141.27.
Extending losses to the eighth straight day, the NSE Nifty slumped 420.35 points or 1.86 per cent to 22,124.70.
From its record peak of 85,978.25 hit on September 27 last year, the BSE benchmark index is down 12,780.15 points or 14.86 per cent.
The Nifty dropped 4,152.65 points or 15.80 per cent from its lifetime high of 26,277.35 hit on September 27, 2024.
Relentless foreign fund outflows and concerns about the US economic outlook made investors jittery, according to analysts.
From the Sensex pack, Tech Mahindra slumped over 6 per cent followed by IndusInd Bank which tanked over 5 per cent. Mahindra & Mahindra, Bharti Airtel, Infosys, Tata Motors, Titan, Tata Consultancy Services, Nestle and Maruti were also among the major laggards. HDFC Bank emerged as the only gainer from the pack.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled with deep cuts. European markets were trading mostly lower. US markets ended sharply lower on Thursday.
"The national market experienced a sharp decline amid heightened bearish sentiment largely influenced by weak global cues. The decline was largely triggered by fear of the implementation of 25 per cent tariff on US imports from Canada and Mexico, set to take effect next week, along with an additional 10 per cent tariff on Chinese goods," Vinod Nair, Head of Research, Geojit Financial Services, said.
Adding to market jitters, the potential imposition of tariffs on the European Union has further fuelled uncertainty, he said. "As investors navigate this volatility, all eyes are on the domestic Q3 GDP data, which could provide vital insights into the economic recovery trajectory and influence market direction," Nair added.
Foreign institutional investors (FIIs) offloaded equities worth Rs 556.56 crore on Thursday, according to exchange data.
Global oil benchmark Brent crude dipped 0.69 per cent to USD 73.53 a barrel.
The BSE Sensex eked out marginal gains of 10.31 points or 0.01 per cent to settle at 74,612.43 on Thursday. The Nifty slipped 2.50 points or 0.01 per cent to 22,545.05, registering its seventh day of decline.