Stock Market Crash: Sensex drops 1,500 points ahead of Reciprocal tariff announcement
The benchmark indices were reacting to two days of global cues. The US market had a very sharp sell-off on Friday, and were on course for a similar fall on Monday, before a late recovery took the benchmark indices into the green.
Global equity markets are facing the jitters ahead of US President Donald Trump’s reciprocal tariff announcement on April 2.
The fall on the Nifty 50 is being led by the index heavyweights, HDFC Bank, ICICI Bank, Reliance Industries, Infosys and TCS, which are together contributing nearly 200 points out of the 350-point drop on the index.
However, the advance-decline ratio is still in favour of the advances as the midcaps are outperforming by virtue of not falling as much as the benchmark indices. The fall on Tuesday as so far eroded nearly ₹3.2 lakh crore in market capitalisation so far.
“We continue to still think that the relative outperformance for either a wealth protection or creating alpha would be focusing more on largecap companies, rather than mid-caps and smallcaps. In the last couple of weeks, we have seen FIIs come back. We have seen some bounce from the lows,” Nitin Bhasin, head of institutional equities at Ambit told CNBC-TV18 on March 28.
“It will remain a volatile market. It will remain earnings under pressure sort of a market which will lead to some bit of questions around liquidity. But we continue to highlight to our global and Indian investors that it’s the largecaps, not the midcaps in the smallcaps and stock picker market, not a very one sided bull run, very similar to what we have seen the last nine years,” he added.
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