Why is the market falling today?

Indian stock market indices, BSE Sensex and Nifty50, experienced a significant drop on Friday, influenced by global market turmoil. This was triggered by growing recession concerns and new tariff declarations from US President Donald Trump, leading to a plunge of over 1% in both indices.

The total market value of BSE-listed companies saw a reduction of Rs 9.47 lakh crore, settling at Rs 403.86 lakh crore, as reported.

1) Trade War Concerns Following Trump's Tariff Announcement

Donald Trump's implementation of a universal 10% baseline tariff on U.S. imports has intensified international trade tensions. Countries with significant trade surpluses, including India, China, and the EU, face elevated tariffs, sparking fears of a prolonged period of market uncertainty.

2) Global Markets Tumble Amid Recession Concerns

Wall Street witnessed sharp declines, with the S&P 500 losing $2.4 trillion in value. This downturn has severely affected major global indices, with Japan's Nikkei falling 3.4%, marking a challenging week since the COVID-19 downturn in March 2020.

3) Indian Pharmaceutical Industry Faces Tariff Pressures

The pharmaceutical sector in India suffered significant losses after Trump hinted at new sector-specific tariffs. Companies like Aurobindo Pharma and Lupin saw declines of up to 7%, reversing previous gains.

4) Heavyweight stocks drag indices

Market leader Reliance Industries and other major sectors, including Pharma and Metal, contributed to the indices' decline, reflecting heightened investor caution amidst global uncertainties.