Fri Feb 28 07:20:00 UTC 2025: ## Indian Stocks Plunge on US Tariff Fears and Global Uncertainty

**MUMBAI, INDIA** – Indian stock markets experienced a sharp decline on Friday, with the Sensex plummeting over 1,200 points and the Nifty falling over 400 points. This significant drop follows a similar trend in Asian markets and is attributed to several factors, including escalating concerns over US President Donald Trump’s continued tariff threats and anticipation of India’s GDP data release.

The Sensex opened down 1.28 percent and the Nifty 50 fell 1.25 percent, extending losses throughout the day. Market analysts, such as V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed to the ongoing uncertainty surrounding US trade policies as a major contributor to the downturn. The recent announcement of additional tariffs on China further fueled investor anxieties. Vijaykumar noted that the market has yet to fully discount the possibility of a full-blown trade war between the US and China. He also cited a spike in the CBOE volatility index as evidence of increased uncertainty.

Adding to the negative sentiment, rising inflation in Japan, with core consumer prices in Tokyo climbing to 2.2 percent year-on-year, raised concerns about tighter monetary policy and its potential impact on global markets. This fueled fears of further interest rate hikes by the Bank of Japan, potentially affecting the Yen carry trade.

Mid and small-cap stocks bore the brunt of the selling pressure, with the BSE Smallcap and Midcap indices falling by 1.93 percent and 1.94 percent respectively. Persistent selling by foreign portfolio investors (FPIs), who have withdrawn Rs 1.137 lakh crore from the Indian market so far this year, further exacerbated the downward trend. The overall market reflects a climate of significant uncertainty and investor apprehension.

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