U.S. Statement Sparks Market Turmoil: Sensex Falls Over 650 Points, Realty Stocks Tumble

New Delhi: The domestic stock market witnessed a sharp decline today, marking the fifth consecutive day of losses. Although the market opened positively in the morning, a statement from the U.S. Commerce Secretary triggered a massive sell-off in the afternoon session. The BSE Sensex plunged over 650 points, while the Nifty50 slipped below 25,700 points.

The Trigger: India-U.S. Trade Deal Statement

According to the U.S. Commerce Secretary Howard Lutnick, the long-pending India-U.S. trade deal could not be finalized because Prime Minister Narendra Modi reportedly did not call U.S. President Donald Trump to approve the agreement. Lutnick claimed that the deal required India’s direct confirmation to be completed, which did not happen. This disclosure sent shockwaves through the market.

By 12:45 PM, the BSE Sensex had fallen 624.58 points (0.74%) to 83,556.38, with an intraday low of 653 points. The Nifty50 index dropped 193.25 points (0.75%) to 25,683.60. Over the past five days, the Sensex has lost nearly 2,000 points, following a 780-point drop on Thursday.

Sectoral Impact

Among Nifty stocks, Eternal, HCL Tech, and Asian Paints saw gains, while ICICI Bank, Adani Enterprises, and Adani Ports recorded the steepest declines. On the broader market, the Nifty Midcap 150 fell 0.33%, and the Nifty Smallcap 250 dropped 0.79%.

Sector-wise, Nifty Realty and Nifty Financial Services indices faced the sharpest losses, while Nifty PSU Bank and Nifty Oil & Gas indices recorded the most gains.

Investor Concerns

Investors reacted sharply to the U.S. statement, fearing delays in bilateral trade agreements and their potential impact on key economic sectors. The revelation underscores the sensitivity of markets to geopolitical developments, especially concerning India-U.S. economic relations.