Bears trample bulls as global fears send markets tumbling

On a day global stock indices were battered by rising international trade tensions induced by US President Donald Trump, Indian markets followed their slump, with all gauges dipping sharply.

- Ram Sahgal

Japan's Nikkei and China's CSI 300 fell 2.88% and 1.97%, respectively, amid weak openings for Germany's Dax and French CAC.

Almost on cue, the Indian benchmarks—Nifty and Sensex—plunged 1.9% each to 22,124.7 and 73,198, respectively, leaving investors poorer by ₹9 trillion on Friday.

Foreign portfolio investors (FPIs) dumped shares worth a provisional ₹11,639 crore and shorted index futures worth ₹2,474 crore.

While domestic institutional investors (DIIs) purchased shares worth ₹12,309 crore, likely selling of leveraged positions by retail investors combined with FPI selling in cash and derivatives offset their buying, said analysts.

The benchmark indices neared their election result-day lows, with the Nifty resting just 1% above its 4 June low of 21,884.5, and the Sensex 1.5% above its low of 72,079.05 after Friday's close.

On a one-year return basis, the Nifty and Sensex are in positive territory by the skin of their teeth, with Nifty up by just 0.6% and Sensex, by a mere 1.2%.

Further, the key midcap index joined its smallcap gauge to turn in a negative return on a one-year basis, an occurrence that normally sends panic bells ringing among retail investors.