Indian share markets witnessed a dramatic fall on Monday, April 7, 2025, with the BSE Sensex and NSE Nifty50 both crashing nearly 5% in early trade. The Sensex tumbled by a staggering 3,914 points (5.19%) to open at 71,449.94 points, while the Nifty sank by 1,146.05 points (5%) to 21,758.4 points. This massive decline comes on the back of escalating fears surrounding a global trade war triggered by the United States' recent announcement of reciprocal tariffs.
Last week, US President Donald Trump imposed a 10% minimum tariff on all imports entering the US, effective April 5, 2025. India, among other nations, faces a steep 26% hike in US tariffs. In retaliation, China has imposed matching tariffs of 34%, raising concerns of a prolonged trade war with ripple effects across global markets.
The volatility has shaken investor confidence, not just in the US but across Asia. Hang Seng Index dropped 10.45%, the Shanghai Composite Index slid 6.34%, the Nikkei 225 plunged 6.6%, and the Korea Composite Stock Price Index (KOSPI) lost 4.83%.
Heavy sectoral and stock-wise losses
Back home, the impact was visible across the board. All major indices saw significant selling pressure. The Nifty Smallcap 100 declined 5.42%, and the Nifty Midcap 100 fell 4.34%. Sectoral indices also took a hit — Nifty Metal tanked 6.98%, Nifty IT dropped 5.93%, Nifty Oil & Gas lost 5.1%, and Nifty Auto slumped 4.6%.
Major NSE-listed companies were among the worst hit: Tata Steel Limited fell 10%, Tata Motors Limited 8.31%, Hindalco Industries Limited 7.23%, Infosys Limited 7.1%, and Tech Mahindra Limited 6.77%. Foreign institutional investors (FIIs) intensified the sell-off, further dragging down the indices.
For those focused on share market investment, this sharp fall is a wake-up call. Market experts suggest adopting a cautious approach. As market analysts rightly pointed out, a "wait and watch" strategy may be best in such unpredictable times.
Summing up
The current stock market crash has sent shockwaves through global and Indian markets, with Sensex and Nifty plunging by over 5% in early trade. As of 10:03 AM on April 7, 2025, the Sensex was trading at 72,508.55 points, marking a drop of 2,856.14 points (3.79%). Meanwhile, the Nifty stood at 21,983.15 points at 10:05 AM, down by 921.30 points (4.02%).
Triggered by the US tariff hikes and retaliatory measures from China, this new phase of trade tensions has created extreme volatility. For those involved in share market investment, it's important to remain calm and avoid panic-driven decisions. Experts believe India's fundamentals remain strong and that the impact of tariffs may be short-lived. Staying informed and thinking long-term is essential for anyone navigating share market investment during these turbulent times.
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