Sensex Crashes 600 Points as US Tariffs Falter Investor Confidence

Sensex Tanks 600 Points as US Tariff Jitters Shake Investor Confidence

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: August 28, 2025

Summary: The new tariffs sanctioned by the USA, foreign fund outflows, sluggish Asian markets, and technical issues pushed the Sensex down 600 points and the Nifty below 24,550.

Indian stock markets crumbled as the Sensex dropped by 600 points, while the Nifty slipped under 24,550. The sudden fall left investors unsettled and wiped out a large chunk of market wealth on Dalal Street.

What Triggered the Market Fall?

US Tariffs Hit Hard:

The U.S. has imposed a 25% tariff on Indian products, increasing total duties to 50%. This action surprised traders and negatively influenced market sentiment.

Foreign Investors Pull Out:

Foreign Institutional Investors (FIIs) sold their Indian stocks, which increased the pressure on an already weak market.

Global Cues Turn Negative:

Asian markets also slipped, spreading nervousness across the region and influencing Indian investors to cut back on risk.

Bearish Technicals:

Trading charts and indicators turned negative, prompting traders to exit positions early.

Sector Performance

Banking and financial stocks were hit hardest during the sell-off, causing significant losses in early trading. All 16 major sectors closed lower, with mid-cap and small-cap indices dropping almost 0.9% each. Major players like Reliance and infrastructure firms also experienced declines, indicating widespread weakness.