Nifty 50: On April 7, Indian stock markets underwent a severe sell-off led by a global wave of panic selling, which started as a reaction to US President Donald Trump’s announcement of new punitive tariffs. Sensex collapsed by 3939.68 points to 71425.01, while the Nifty slipped by 1160.8 points to 21743.65, marking one of the worst trading days in recent memory. The losses pushed both indices to their lowest level in the last 10 months.
Trump’s Tariffs Triggering Global Havoc
The greater part of the market rout stems from President Trump’s rather unorthodox tariff policy that imposes country-specific duties of up to 50%, including a 26% rate on Indian exports. These tariffs literally meant to protect American industries ignited fears about a possible global trade war. However, Trump’s remarks dismissing these tariffs as ‘medicine to fix something broken’ did little to calm the nerves of the investors.
The response came swift and brutal, with the investors selling shares across sectors in fear that economic stability would be prolonged.
Markets Open Deep in Red
Trading resumed after the weekend break with a sharp decline. Within the first hour of opening, the Sensex had already fallen over 2,700 points, while the Nifty struggled to stay above 22,000. The bloodbath wasn’t limited to equities. The Indian rupee also dropped 30 paise, opening at 85.74 against the US dollar, adding to the overall pressure on the markets.
Experts Call for Urgent Economic Reforms
Market experts emphasised that India’s troubles are not homegrown but stem from global interconnectedness. Ajay Bagga, a well-known market commentator, said, “India is feeling the heat not due to internal issues but because it’s deeply linked to global portfolio flows. We now need a strong fiscal, monetary, and reform package to cushion the impact.”
Sunil Gurjar, a SEBI-registered research analyst, pointed out that the Nifty50 has already breached its first support level and is nearing a second. “If the trend continues, we could see more breakdowns and extended declines,” he cautioned.
Asian Markets Also in Free Fall
Asian equities were among the first to react to the tariff announcement:
- China’s stock markets dropped over 4%, especially after it retaliated with 34% tariffs on US goods.
- Hong Kong’s Hang Seng Index crashed more than 10%, indicating severe investor distress.
- Japan’s Nikkei fell 6.5% after initially sliding over 8% in early trade.
- Taiwan’s and Singapore’s main indices also recorded losses of nearly 10% and 8%, respectively.
The tariff-driven uncertainty has effectively wiped out billions in market value across Asia in a matter of hours.
Wall Street is set up for a lower open.
The panic isn’t just present in Asia. US futures are trading significantly lower, indicating an unfavourable start on Wall Street. Big losses are expected for the Dow, S&P 500, and Nasdaq, intensifying fears of a global recession in the making.
Stephen Innes of SPI Asset Management remarked, “Markets are in free fall once again. Trump’s crew is doing a victory lap. If it persists, the global recession risk becomes pronounced.”
India at a Crossroads
As the world teeters on the edge of a trade war, India must act swiftly to mitigate the damage. Investors are urged to remain cautious, avoid aggressive trades, and watch for signs of stability in global markets. The government may need to consider swift economic interventions to restore confidence and protect domestic growth. Source ndtv.com
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