The Indian stock market opened to chaos on Monday as global economic uncertainty reached a boiling point. Following U.S. President Donald Trump’s announcement of steep retaliatory tariffs on several countries, including India, markets around the world went into freefall. Indian investors woke up to shocking news—Sensex and Nifty had opened with a massive gap-down, erasing over ₹20 lakh crore in market value within minutes.
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A Rocky Start for Indian Stock Market
The week kicked off with an absolute rout in the stock market. The Sensex plunged by a jaw-dropping 3,939.68 points (5.22%) to open at 71,425.01, while the Nifty dropped 1,160.8 points (5.06%) to start the day at 21,743.65.
By mid-morning, there was little sign of recovery. The Sensex was down by 3,023.51 points (4.01%) at 72,341.18, and the Nifty continued sliding, trading 983.95 points lower at 21,920.50.
This wasn’t just a correction—it was a market bloodbath.
What Triggered the Crash?
The root cause? A brewing global trade war.
On April 2, President Trump announced retaliatory tariffs against multiple countries. India was hit with a 26% tariff, while Vietnam, China, Taiwan, South Korea, Japan, and the EU also faced heavy duties (source). Trump’s argument? These countries impose unfair tariffs on American goods—and the U.S. is simply responding in kind.
The move sent shockwaves through financial markets. Wall Street reacted first, with the Dow Jones falling 2,231 points (5.5%), the S&P 500 losing nearly 6%, and the tech-heavy Nasdaq Composite plunging 5.82%—one of its worst single-day drops since the COVID-19 pandemic (CNBC Report).
Sectoral Impact: Red Everywhere
Every stock in the Sensex was in the red during opening trade. Major companies like Tata Steel, Infosys, and Tata Motors saw heavy losses. Tech stocks, including Tech Mahindra, HCL Tech, and L&T, also fell sharply.
On the Nifty, the metal index was the worst performer, with steep losses in IT, oil & gas, auto, real estate, and healthcare stocks. Most indices were down more than 5%, reflecting widespread panic selling.
Not Just India — It’s Global
This market meltdown isn’t isolated. Across Asia:
- Japan’s Nikkei dropped 6%
- South Korea’s Kospi fell 4.5%
- China’s Shanghai Composite declined 6.5%
- Hong Kong’s Hang Seng tanked 10%
Meanwhile, the Indian rupee also took a hit, falling 30 paise to ₹85.74 per USD, adding fuel to investor concerns.
Read more about the global impact here: Bloomberg Asia Market Summary
Expert Analysis: What’s Going On?
According to market expert Sunil Shah, the crash in Sensex and Nifty was expected after the global cues from last Friday. “When China retaliated with its own tariffs and the U.S. market tanked, it was only a matter of time before Asian markets followed suit. Investors are fearful that this could trigger inflation, reduce global GDP growth, and spark prolonged uncertainty in the stock market,” he said.
Essentially, trade wars rarely have winners—and the stock market knows it.
Flashback: The Warning Signs Were There
Last week (April 4), the markets had already shown signs of tension. The Sensex fell 930.67 points to close at 75,364.69, while the Nifty slipped 345.65 points to end at 22,904.45. The writing was on the wall.
What Should Investors Do?
In times of extreme volatility, it’s important not to panic. Here’s what investors can consider:
- Diversify portfolios to minimize risk
- Focus on long-term fundamentals
- Keep an eye on global policy changes
- Stay informed through trusted platforms like abroad.educationgarage.com
While the road ahead may look rocky, experienced investors know that such moments often lead to future opportunities—if approached wisely.
Final Thoughts
Today’s market crash, led by the Sensex and Nifty, is a stark reminder of how interconnected the global economy truly is. With the stock market facing headwinds from international tensions, policy decisions, and inflationary fears, vigilance is key.
Follow abroad.educationgarage.com for all the latest updates on the Sensex, Nifty, global economic trends, and what they mean for you as an investor.
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