Wed Feb 12 09:34:38 UTC 2025: ## Indian Stock Market Plunges Amidst US Tariff Fears and FII Sell-Off

**Mumbai, India** – India’s stock market experienced a significant downturn on Wednesday, with the benchmark indices suffering sharp losses amid escalating US trade tensions and continued foreign institutional investor (FII) selling. The Sensex plummeted over 748 points, closing at 75,545.47, while the Nifty50 fell nearly 1%. This follows a Rs 10 lakh crore market capitalization wipeout on Tuesday, bringing the potential two-day loss to a staggering Rs 16 lakh crore.

The dramatic sell-off is attributed to several factors: President Trump’s decision to raise tariffs on steel and aluminum imports to 25%, heightening global trade war anxieties; increased FII selling, totaling approximately Rs 1 lakh crore this year; and concerns surrounding upcoming inflation data in both the US and India.

Experts like Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the impact of Trump’s broad-based tariff increases, which have exacerbated market uncertainty and the risk of retaliatory measures from the European Union. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, underscored the combined pressure of FII outflows and Trump’s tariff threats.

Major Indian companies, including Reliance Industries, Axis Bank, HDFC Bank, and Bajaj Finance, experienced significant selling pressure. Reliance, India’s most valuable company, saw its shares fall over 2%.

While anticipation builds for US and Indian inflation data – with hopes that India’s January inflation eased to a five-month low – Dr. Vijayakumar cautioned that Trump’s actions could undermine hopes for US interest rate cuts. He warned that the economic consequences of higher tariffs could trigger a US market crash.

The volatility on Dalal Street is expected to continue as investors grapple with the uncertainty surrounding US trade policies and the ongoing impact of foreign fund flows.

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