The BSE Sensex lost further ground to close nearly 2% lower at 73,198 on Friday, marking its worst session since early October 2024, mirroring the global peers. Market sentiment was dented by fears of a global trade war and persistent sell-off by foreign investors. U.S. President Donald Trump confirmed on Thursday that the 25% duties on imports from Canada and Mexico would come into effect on March 4 and not April 2 as he had suggested the day prior, and that goods from China would incur an additional 10% duty. All sectors posted losses, led by tech companies and FMCG stocks. Meanwhile, data released just after market hours showed India's economy expanded by 6.2% in the December quarter, up from a revised 5.6% growth in the previous quarter but below market forecasts of 6.3%. The index posted a 2.8% weekly loss and a 5.6% monthly decline, marking its third consecutive monthly drop, driven by weak earnings, concerns over a global trade conflict, and continued foreign fund outflows.
The Shanghai Composite fell 1.98% to close at 3,321 while the Shenzhen Component dropped 2.89% to 10,611 on Friday, with both benchmarks ending the week sharply lower as US President Donald Trump imposed an additional 10% tariff on imports from China, set to take effect on March 4. Trump also confirmed that his proposed 25% tariffs on Mexico and Canada would proceed next week. The escalating tariffs are expected to significantly impact China’s economy, which relies heavily on exports and free trade. Investor sentiment was further dampened as the market braced for next week’s “Two Sessions,” where the Chinese government will unveil its policy plans for the year ahead. A key focus will be on the details of fiscal stimulus measures aimed at supporting economic growth. Technology and AI-related stocks led the declines, with sharp losses from Cambricon Technologies (-6.5%), Eoptolink Technology (-9.8%), and Hygon Information Technology (-6.8%).
The Nikkei 225 Index plunged 2.88% to close at 37,155 on Friday, hitting its lowest levels in five months and mirroring losses on Wall Street overnight where Nvidia and other technology stocks were sold off. Investors also grappled with Trump’s escalating tariffs and mounting economic concerns in the US. Trump confirmed that tariffs against Mexico and Canada will proceed next week, while China will be slapped with an additional 10% tariff. In Japan, the latest economic reports pointed to softening activity, including retail sales, industrial production and Tokyo inflation figures. Chip and AI-related stocks led the downturn, including significant losses from Disco (-10.3%), Advantest (-8.9%), and Tokyo Electron (-4.5%). Export-heavy automakers and consumer stocks also posted notable losses. Over the week, the Nikkei 225 tumbled 4.18% for its worst weekly performances since September.
