Stock Market Crash : It was a bloodbath on Dalal Street on Monday, as Indian stock markets witnessed a sharp and sudden meltdown. The crash came amid a global sell-off, largely triggered by renewed tariff tensions between the United States and China. As a result, investor wealth worth a staggering ₹16.19 lakh crore was wiped out within just a few hours of trading on April 7.
What Triggered the Stock Market Crash ?
The steep drop followed fresh announcements of reciprocal tariffs by the U.S., with China retaliating soon after. Consequently, this reignited fears of a full-blown trade war—eerily similar to the one seen in 2018. Moreover, concerns over a looming recession in the U.S. economy added to the market jitters, pushing global investors into risk-off mode.
Sensex and Nifty in Freefall
Amid the chaos, the BSE Sensex plunged by 3,939.68 points, or 5.22%, reaching an intraday low of 71,425.01. Simultaneously, the NSE Nifty tumbled 1,160.80 points, or 5%, to hit 21,743.65. Notably, this was the worst market opening since March 2020—at the height of the COVID-19 crisis. Furthermore, it marked the steepest one-day crash since June 4, 2024, when markets had dropped over 8% post-election.
All Sectors Bleed Red
By 10:30 AM, both indices had recovered slightly; however, they were still down nearly 4%. More importantly, all 30 Sensex stocks were trading in negative territory—reflecting the scale of the market-wide sell-off.
- Tata Steel led the losers, crashing over 10%
- Tata Motors followed, shedding more than 9%
- Additionally, major players like Infosys, HCL Tech, Tech Mahindra, Reliance Industries, TCS, and L&T also witnessed sharp declines
Investor Wealth Takes a Major Hit
In just one trading session, the market capitalization of BSE-listed companies plunged by over ₹16 lakh crore. Clearly, investor sentiment has been rattled by the escalating trade tensions and fears of global economic slowdown.
Also Read : Why New US Tariffs Might Hurt Chinese Factories More Than American Consumers in 2025
Looking Ahead: Volatility Likely to Persist
Given the current uncertainty, investors should brace for continued volatility. While the U.S.-China trade tensions are the primary catalyst, other macroeconomic factors—such as rising inflation in key economies and central bank actions—could further influence market direction in the coming weeks.
For now, experts advise caution. Diversifying portfolios, focusing on long-term fundamentals, and avoiding panic-driven decisions could help investors weather this turbulent phase.
