India’s stock market tumbled sharply on Thursday, logging its steepest one-day decline in over four months amid uncertainty over potential US tariffs. The 30-share S&P BSE Sensex dropped 780.18 points, or 0.92%, to 84,180.96, while the broader NSE Nifty 50 fell 1.01% to 25,876.85. This plunge erased nearly ₹8 lakh crore of investor wealth.
All 16 major sectors saw losses, with small-cap and mid-cap indices sliding 2% each. The sell-off was driven by fears that the US may impose tariffs as high as 500% on countries importing oil from Russia, a move that could impact India’s economy. So far, foreign investors have sold $900 million worth of shares in January alone, following record outflows of $19 billion in 2025.
Among the hardest-hit sectors were metals, which fell 3.4%, oil and gas down 2.8%, and IT, which dropped 2%. Major stocks that declined included Reliance Industries, Gokaldas Exports, Pearl Global, Avanti Feeds, Apex Frozen, L&T, and BHEL. Analysts say the market is reacting to rising global uncertainty and ongoing trade tensions between India and the US.
The finance ministry has also proposed lifting five-year-old restrictions on Chinese companies bidding for government contracts, adding to market volatility. Overall, investor sentiment remains cautious as concerns over tariffs and foreign outflows continue to weigh on the markets.