Sensex Plunges 645 Points, Nifty Falls to 24,610: Trade Worries Drag Markets Down

Mumbai, May 22, 2025 — The Indian stock market witnessed a sharp sell-off on Thursday, with benchmark indices BSE Sensex and NSE Nifty ending deep in the red amid rising concerns over unresolved global trade tensions.

The Sensex dropped by 645 points, closing at 80,952, while the Nifty 50 declined 204 points to end at 24,610. The downturn came as investor sentiment took a hit due to growing uncertainty surrounding tariff negotiations between the United States and key global economies, including India.

Market analysts attribute the fall to global trade headwinds, as the lack of progress in tariff discussions has raised fears of strained trade relations and a potential slowdown in global economic activity.

"Investors are in risk-off mode as they await clarity on U.S. trade policy. The ambiguity surrounding tariff resolutions is prompting profit booking and flight to safety," said a senior analyst at a Mumbai-based brokerage.

Sectors most affected included IT, metal, and auto stocks, which are particularly sensitive to international trade and export dynamics. On the other hand, defensive sectors like FMCG and pharma witnessed relatively minor losses.

With global cues remaining weak and no immediate resolution in sight, market experts caution investors to brace for continued volatility in the near term.