D-Street Bloodbath! Trump’s Tariffs Send Sensex Crashing 3,000 points in Early Trade, Nifty Plummets 1,100 Points
The sharp decline mirrored a broader global sell-off triggered by heightened fears of a trade war following tariff hikes by U.S. President Donald Trump and subsequent retaliatory measures from China.
Indian stock markets witnessed a tumultuous start to the week as the Sensex and Nifty indices plummeted amidst escalating global trade tensions and recession concerns in the U.S. At the opening bell on Monday, the BSE Sensex nosedived by 3,072 points, or 4.09%, landing at 72,296, while the Nifty50 saw a sharp decline of 1,146 points, or 5%, to 21,758 — marking its most significant drop since early June.
The sharp decline mirrored a broader global sell-off triggered by heightened fears of a trade war following tariff hikes by U.S. President Donald Trump and subsequent retaliatory measures from China.
In early trading, the Sensex crashed by 3,939.68 points, or 5.22%, settling at 71,425.01, while the Nifty tumbled 1,160.8 points, or 5.06%, to 21,743.65. All sectors of the Sensex were deeply in the red, with Tata Steel and Tata Motors taking the hardest hits, plunging over 8% and 7%, respectively. Other major laggards included HCL Technologies, Tech Mahindra, Infosys, Larsen & Toubro, Tata Consultancy Services, and Reliance Industries.
Meanwhile, Asian markets also saw substantial losses, with Hong Kong's Hang Seng plummeting nearly 11%, Tokyo's Nikkei 225 down almost 7%, Shanghai's SSE Composite dropping over 6%, and South Korea's Kospi sinking 5%. These declines came in the wake of a dismal performance in U.S. markets on Friday, where the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all recorded steep losses exceeding 5%.
Analysts like Vikas Jain, Head of Research at Reliance Securities, highlighted the heightened risks of a global recession amid the escalating trade tensions. The situation has also raised concerns about inflationary pressures and slower economic growth worldwide. Foreign Institutional Investors (FIIs) pulled out equities worth Rs 3,483.98 crore on Friday, reflecting deepening apprehensions in the market.
As global oil benchmark Brent crude dropped to USD 63.78 a barrel, the immediate future remains uncertain for Indian markets, with investors closely monitoring developments in the ongoing trade dispute between the world's two largest economies.
