Stock Market Today: Market Bleeds! Sensex Crashes 1000 Points, Nifty Below 23100 as US Steel Tariffs Trigger Sell-Off

The stock market today witnessed a sharp decline as Sensex and Nifty tumbled over 1.3% in the afternoon session. Investor sentiment turned negative after US President Donald Trump announced plans to impose a 25% tariff on steel and aluminium imports. This raised fears of a global trade war, impacting stock markets worldwide.

Sensex and Nifty Drop Sharply

The Sensex plunged nearly 1,000 points (1.25%), dropping to 76,300, while the Nifty slumped 300 points (1.3%), slipping below 23,100. The broader market suffered even more, with midcap and smallcap indices declining up to 3.5%, reflecting deeper concerns beyond large-cap stocks.

Impact of US Steel Tariffs on Indian Markets

The US steel tariffs, which increase aluminium duties from 10% to 25% and reinstate a 25% duty on steel imports, have alarmed global markets. Key trading partners like Canada, Mexico, and Brazil lost their exemptions, fueling uncertainty in the trade sector.

In response, the Indian Steel Association (ISA) expressed serious concerns, urging the Indian government to push for the removal of existing anti-dumping duties and secure exemptions from these new trade restrictions. The ISA warns that these tariffs could reduce Indian steel exports to the US by 85%, leading to a surplus in the domestic market and impacting steel prices.

Investor Sentiment and Market Outlook

The stock market's decline reflects cautious investor sentiment, driven by weak global cues and the lack of strong domestic triggers. Foreign Institutional Investors (FII) have pulled out ₹12,643 crore from Indian markets in February so far, adding to the volatility.

With uncertainty surrounding global trade policies, market movements will largely depend on further developments in the US tariff situation and how the Indian government responds to protect its steel exports.