MUMBAI: In a dramatic turn of events on Thursday, the Indian stock market faced a severe downturn, with the Sensex dropping 621 points to close at 84,442.02, and the Nifty sliding below the 26,000 mark. This sharp decline is primarily attributed to a cocktail of factors, including looming tariff threats from the United States, leading to substantial foreign fund outflows and pressures on blue-chip stocks.

The recent remarks by U.S. President Donald Trump signaling potential hikes in tariffs on India have rattled investors. Trump emphasized that trade relations could see swift punitive measures if New Delhi does not comply with requests to reduce purchases of Russian oil. This escalation of trade tensions has created an atmosphere of uncertainty, prompting many to pull out their investments. “The fear of increased tariffs has stirred the market significantly,” stated V K Vijayakumar, Chief Investment Strategist at Geojit Investments. “Investors are advised to adopt a cautious stance as geopolitical tensions also rise.”

Market analyst Aakash Shah highlighted the impact of profit booking in heavyweight stocks. HDFC Bank, a cornerstone of the benchmark indices, saw its shares slide approximately 2% after a series of declining trends. “With FII sales hitting Rs 36.25 crore on Monday, combined with the bank’s lackluster growth in deposits, the market was ripe for a rout,” Shah noted.

The results have not only left investors anxious but have also wiped out nearly ₹8 lakh crore in market capitalization. As the India VIX, a measure of market volatility, continues to rise, market experts predict that traders should brace themselves for turbulent trading sessions ahead. “The Nifty is currently trapped in a consolidation phase, with immediate support around 26,100,” said Shah, urging traders to approach current conditions with caution. As these trends develop, many investors are left contemplating the intricate balance of risks in a volatile global market.