Indian equity markets crashed to a 10-month low on Monday morning, shaken by the blanket tariffs announced by US President Donald Trump. In the minutes after the opening bell, the Sensex plummeted by 3,939.68 points to hit 71,425.01, while Nifty dropped 1,160.8 points to close at 21,743.65. The sudden crash erased more than Rs 20 lakh crore of investor wealth, mirroring the panic in markets following Trump’s hardline trade approach.
The Sensex, which consists of the largest 30 firms listed on the Bombay Stock Exchange (BSE), recovered slightly but was still more than 2,700 points behind at 10 am. Nifty, meanwhile, hovered just above 22,000. The rupee also felt the heat, opening 30 paise lower at 85.74 against the US currency.
Trump’s Tariff Bombshell Jolts Markets
The market volatility is a result of a fresh round of tariffs imposed by President Trump. These levies on individual countries are meant to retaliate against what Trump refers to as “unfair” trade practices. Tariffs now go up to 50%, with India being hit with a 26% rate plus a global floor duty of 10%. These actions have unsettled the global investor community and caused shockwaves in Asian and emerging markets.
In a defiant remark to the press, Trump had no apology for the market upheaval. “sometimes, you have to take medicines to fix up things,” he said, justifying the tariffs as needed to revive American industries.
#WATCH | As the US stock markets tumbled after the imposition of retaliatory tariffs, US President Donald Trump says, “…I don’t want anything to go down. But, sometimes, you have to take medicines to fix up things.”
(Source – US Network Pool via Reuters) pic.twitter.com/kzeliFsu7r
— ANI (@ANI) April 7, 2025
Experts Warn of Economic Fallout
Market analysts think the fallout is not so much about domestic factors and more about India’s vulnerability to worldwide portfolio flows. They are calling for immediate financial reforms to shield the country from the domino effect of a global economic meltdown.
India will be in the firing line, not because of homegrown issues but as a connected link in the cross-country portfolio flows. India will require a fiscal, monetary, and reform package to shield the home economy from this worldwide economic winter that is set to fasten,” said Ajay Bagga, one of the popular market pundits, to ANI.
SEBI-registered analyst Sunil Gurjar explained that the Nifty50 has already crossed its first support level and is moving towards the second, which is a point of concern in terms of a drawdown trend.
Asian Equities Hit Hardest
Asian markets suffered the most from the initial panic. China’s benchmark indices dropped more than 4%, while Hong Kong’s Hang Seng index crashed over 10%. Japan’s Nikkei plummeted over 8% in early trading and closed 6.5% down. Taiwan’s key index collapsed by almost 10%, while Singapore’s fell over 8%.
China has already retaliated with a 34% retaliatory tariff, aggravating tensions between the world’s two biggest economies.
Wall Street Prepares for a Punch
New York Stock Exchange futures indicate a dismal morning when US markets resume. Wall Street is anticipated to reflect the Asian market debacle, further fueling apprehensions of a pending global downturn.
“The market is free-falling again, breaking through floors. Trump’s people aren’t blinking. The tariffs are being viewed as a victory lap, not a bargaining chip,” wrote Stephen Innes of SPI Asset Management.
As panic mounts, investors and governments worldwide are racing to gauge the long-term consequences of an all-out trade war. For India, this international tempest represents a stern test of its economic resilience against external shocks.
