Sensex and Nifty witness steep decline as global tensions escalate following US tariff hike.

Indian stock markets witnessed a significant crash on Monday, with the Sensex plunging 2,226.79 points to close at 73,137.90, and the Nifty slipping 742.85 points to settle at 22,161.60. The nearly 3% drop in benchmark indices came amid growing concerns over a potential global trade war sparked by new US tariffs.

The selloff followed a broader global market rout, with sharp losses recorded across Wall Street and major Asian indices including Japan, Singapore, and China. The announcement by US President Donald Trump to impose tariffs on all trading partners has rattled investor sentiment worldwide.

IT stocks and export-heavy companies were among the worst hit, with Tata Steel falling over 9%, and Tata Motors losing more than 8%. Other major losers included HCL Technologies, Infosys, Kotak Mahindra Bank, ICICI Bank, Reliance Industries, and Adani Ports.

What's Driving the Crash?

The market slide is being driven by fears of a global economic slowdown. Countries like China, Canada, and Mexico have announced retaliatory tariffs, escalating trade tensions further. The situation has reignited worries of a global recession, with China and Japan's stock markets declining 10% and 8% respectively.

Vikas Jain, Head of Research at Reliance Securities, explained that “the US S&P 500 fell 6% and the Dow Jones dropped over 2,000 points last week,” marking the worst performance since the COVID-19 pandemic. This followed China's announcement of a 34% reciprocal tariff on all US imports effective April 10.

Experts warn the tariff hikes may increase inflation, dent global growth, and reduce company profit margins. With the US earnings season approaching, analysts expect cautious forward guidance and possible negative revisions to earnings forecasts.

Federal Reserve Chair Jerome Powell acknowledged the tariffs were “larger than expected” and flagged potential risks to both inflation and economic growth.

What Lies Ahead for Indian Investors?

Despite Monday’s dramatic fall, market experts are urging caution and patience.
"Today’s Black Monday has shaken Indian markets, but investors must stay calm," said Pranay Aggarwal, CEO of Stoxkart. “Avoid panic selling, continue SIPs, and look at this as a chance to buy quality stocks at attractive valuations.”

He advised investors to maintain a diversified portfolio and keep a close watch on global developments, particularly from the US and crude oil markets.