India’s stock market recorded its biggest one-day fall in four months on Thursday, including heavyweight Reliance Industries Ltd, as uncertainty over US tariffs fueled widespread selling.
The 30-share S&P BSE Sensex fell 0.92% or 780.18 points to 84,180.96, while the broader NSE Nifty 50 fell 1.01% to 25,876.85. There was a decline in all 16 major sectors that day. Broader small-caps and mid-caps declined 2% each. The Indian rupee also closed lower on Thursday as the tariff crisis and persistent outflows led to fresh and surprise intervention by the central bank.
Foreign investors have sold shares worth $900 million so far in January, after a record sale of $19 billion in 2025.
500% US tariff on India?
US President Donald Trump is considering imposing at least 500% tariff on countries buying oil from Russia and had warned India of imposing higher tariffs on this matter. Washington has already imposed tariffs of up to 50% on New Delhi, while discussions on an India-US trade deal are ongoing.
Anita Gandhi, head of institutional trading at Arihant Capital Markets, said markets are not comfortable with the uncertainty on tariffs.
stock in news
- Export-oriented apparel makers Gokaldas Exports Ltd and Pearl Global Ltd declined 8.5% and 7.9%, respectively. Seafood exporters Avanti Feeds and Apex Frozen declined 8.6% and 7.8%, respectively.
- Metal shares fell 3.4%, their biggest single-day decline in nine months, as the pace of the global metals rally slowed. The sub-index had reached a record high on Tuesday.
- Oil and gas stocks fell 2.8%, their worst session in nine months, as investors assessed Trump’s plan to curb crude imports from Venezuela. Reliance Industries lost 2.2%.
- The IT index fell 2%, reversing a 2.4% gain in the previous two sessions.
- Capital goods makers L&T and BHEL, which have significant stake in government projects, lost 3.1% and 10.5%.
India’s Finance Ministry plans to end a five-year-old ban on Chinese companies bidding for government contracts, Reuters reported, citing sources.