Market Meltdown: Trump’s Tariff Threat, Oil Woes Sink Sensex, Nifty
Indian stock markets experienced a significant downturn on Monday, August 4, 2025, with both the Sensex and Nifty indices recording substantial losses. This decline was primarily attributed to a combination of factors.
The ongoing sell-off in oil and gas prices globally exerted considerable pressure on investor sentiment. Concerns over energy security and its impact on the Indian economy played a key role.
Adding to the negative sentiment was the threat of new tariffs from the US under the Trump administration. His warning regarding penalties for Russian oil purchases further unsettled already jittery markets.
Foreign Institutional Investors (FIIs) continued their selling spree, exacerbating the downward trend. Conversely, Domestic Institutional Investors (DIIs) displayed a contrarian stance, engaging in net buying during the session.
Market analysts are closely monitoring the evolving geopolitical situation and its potential impact on Indian businesses. The coming days will be crucial in determining the market’s trajectory and the overall economic outlook. The situation underscores the increasing vulnerability of the Indian economy to global uncertainties, particularly those stemming from US policy and energy markets.
