Bloodbath on Dalal Street: How Investors Lost Rs 9 Lakh Crore in A Single Day

New Delhi: In a brutal trading session, India’s stock market witnessed a sharp meltdown as the BSE Sensex plunged over 1,414 points (1.90%) amid relentless selling pressure across sectors. The crash, triggered by persistent foreign investor outflows and heightened global trade tensions following Donald Trump ’s fresh tariff announcements, wiped out nearly ₹9 lakh crore in investor wealth in a single day, according to reports.

Dalal Street opened on a bearish note, with the Sensex shedding 411 points within minutes of opening. The index further nosedived 1,471 points intraday, before finally settling at 73,198.10, down 1,414.33 points from its previous close. The Nifty 50 mirrored the fall, sliding 420.35 points to 22,124.70.

According to trading experts, heavy foreign investor selling, fears of an economic slowdown, and concerns over the impact of Trump’s tariff measures drove the sell-off. The biggest shock came from the IT and banking sectors, which bore the brunt of the market rout. Panic among retail investors further deepened the decline, leading to massive losses across the board.

The crash was broad-based, with the biggest losers being:

• Technology stocks (-4.20%)
• Telecommunications (-4.09%)
• Automobile sector (-3.84%)
• Consumer Discretionary Goods & Services (-2.74%)

The Mid-cap and Small-cap indices also tumbled, dropping 2.16% and 2.33%, respectively.

Among the 30-share BSE Sensex pack, 29 stocks ended in the red, with HDFC Bank being the only gainer, rising 1.86% to ₹1,732.40.

The worst-hit stocks included:

• IndusInd Bank (-7.02% to ₹972.80)
• Tech Mahindra (-6.38% to ₹1,486)
• Bharti Airtel (-5.07% to ₹1,566)
• Mahindra & Mahindra (M&M) (-4.74% to ₹2,596.85)
• Tata Motors (-4.18% to ₹621.10)

“The national market experienced a sharp decline amid heightened bearish sentiment largely influenced by weak global cues. The decline was largely triggered by fear of the implementation of 25 per cent tariff on US imports from Canada and Mexico, set to take effect next week, along with an additional 10 per cent tariff on Chinese goods,” Vinod Nair, Head of Research, Geojit Financial Services, said.

Adding to market jitters, the potential imposition of tariffs on the European Union has further fuelled uncertainty, he said.

“As investors navigate this volatility, all eyes are on the domestic Q3 GDP data, which could provide vital insights into the economic recovery trajectory and influence market direction,” Nair added.

“The market’s decline was primarily driven by mounting concerns over a potential global trade war and a decelerating US economy. US President Donald Trump’s announcement of a 25% tariff on imports from Canada and Mexico, effective March 4, along with additional proposed tariffs on China, intensified fears of escalating trade tensions.

“This marked the fifth consecutive month of losses for the Nifty-50, the longest losing streak in nearly three decades,” Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, said.

A major worry is China’s potential currency devaluation in response to the tariffs, which could disrupt regional economies, affecting currencies like the Taiwan Dollar and South Korean Won. However, the Indian Rupee is likely to be less impacted due to its managed float mechanism and a persistent trade deficit.

According to Manish Jain, Chief Strategy Officer, Mirae Asset Capital Markets, post-COVID, Nifty has seen a 14-15% price-earnings compression. He cautioned that if GDP growth fails to improve in the coming months, markets may slide further to 22,000-22,200 levels, translating to a 15-16% correction from the recent peak.

As uncertainty looms, market analysts believe that while a correction is nearing saturation levels, volatility is expected to persist in the coming weeks. Investors will now keenly watch macroeconomic indicators and global cues before making fresh bets on Dalal Street.