Market In Shambles As Sensex, Nifty Close 3 Per Cent Down, Investors Question What Comes Next

The Indian stock market experienced a nightmare on Monday. After beginning the day in red, the indices continued to bleed throughout the session and ended trading in red, highlighting the pessimistic sentiment prevalent in the markets.

The BSE Sensex closed the session under 73,150, after crashing over 2,200 points or close to 3 per cent, while the NSE Nifty50 settled for the day at 22,161.60, plunging nearly 750 points or more than 3 per cent.

On the 30-share Sensex, only Hindustan Unilever emerged as the exception in green. Meanwhile, the biggest laggards in the session included Tata Steel, L&T, Tata Motors, Kotak Bank, and M&M. 

Broader Markets And Global Indices

In the broader markets, the Nifty Microcap 250 tanked 4.33 per cent. Sectorally, the Metal and Realty indices clocked the maximum losses and plunged 6.75 per cent and 5.69 per cent respectively. 

Global markets also witnessed the bloodbath with Asian indices leading the downfall. While Hong Kong’s Hang Seng crashed over 13 per cent, logging the worst day seen in over 16 years, the Tokyo Nikkei 225 plummeted almost 8 per cent. The Shanghai index fell over 7 per cent during the day and South Korea’s Kospi tanked more than 5 per cent. European indices also witnessed major selling pressure and traded over 6 per cent lower. 

Also Read : No Relief Anytime Soon: European Indices Crash As Tariff Shockwave Rattles Markets

Why Did Markets Crash Today?

This selloff was triggered by the steep tariffs imposed by US President Donald Trump on nearly 60 countries. In response, China reacted with its own tariffs on American imports, accelerating the possibility of a global trade war, leaving analysts in a panic. Vinod Nair, Head of Research, Geojit Investments Limited explained, “The market tumbled as the carnage over high US tariffs and the retaliation by other countries may kickstart a trade war. Sectors like IT and metals have underperformed relative to the broader market due to the risk of high inflation with slower growth that may result in a potential recession in the US.”

The expert however noted that the overall impact on India might be limited in comparison to other countries. Sundar Kewat of Ashika Institutional Equity said that even a better-than-expectations US jobs report failed to ease the worries of investors as trade concerns escalated. “Weak cues from Wall Street — where markets closed lower last Friday — spilled over into global markets, including India. Investor sentiment took a hit amid growing recession fears, exacerbated by heightened global trade tensions,” Kewat stated.