Fri Feb 28 05:10:00 UTC 2025: ## Indian Stocks Plunge on US Tariff Fears and Global Uncertainty

**Mumbai, India** – Indian stock markets experienced a significant downturn on Friday, mirroring weak Asian markets and fueled by escalating concerns over US President Donald Trump’s tariff threats and anticipation of India’s GDP data release. The BSE Sensex plummeted 952.39 points (1.28%), closing at 73,660.04, while the Nifty 50 index fell 282.45 points (1.25%), ending at 22,265.05.

The decline is attributed to ongoing uncertainty surrounding US trade policy, with analysts pointing to President Trump’s recent announcement of additional tariffs on China. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that the market is reacting to the perceived unpredictability of US trade actions and the potential for a full-blown trade war between the US and China. He also highlighted a rise in the CBOE volatility index, indicating increased market anxiety.

Adding to the negative sentiment is rising inflation in Japan, exceeding the Bank of Japan’s target and suggesting a continuation of tight monetary policy. This could impact the Yen carry trade and further unsettle investors.

Mid and small-cap stocks were particularly hard hit, experiencing declines of 1.94% and 1.93% respectively. Persistent selling by Foreign Portfolio Investors (FPIs), who have withdrawn Rs 1.137 lakh crore from the Indian market this year, is also contributing to the downward pressure. The release of India’s GDP data is expected to further influence market trends in the coming days. The unrelated news of USAID terminating funding for numerous lifesaving projects was also noted, but its impact on the market was not directly addressed in the text.

Read More