Global Sell-Off Hits India, Sensex Falls 2,226 Points, Nifty Ends 743 Lower

Mumbai: Indian stock markets witnessed a sharp downturn on Monday, mirroring the global crash, as domestic benchmark indices experienced their largest single-day decline since June 4 last year. The downturn was driven by fears of a full-scale trade war following US President Donald Trump’s announcement of steep tariffs and China’s retaliatory measures.

Sensex and Nifty Witness Massive Losses

The BSE Sensex plunged 2,226.79 points, or 2.95 per cent, closing at 73,137.90. The index experienced significant volatility, ranging from an intra-day high of 73,284.24 to a low of 71,425.01. This resulted in an investor loss exceeding Rs 13.5 lakh crore.

Similarly, the Nifty 50 fell 742.85 points, a decline of 3.24 per cent, settling at 22,161.60. Tata Steel was the hardest-hit stock, shedding over 7 per cent on both exchanges.

Global Factors Drive the Decline

The steep decline in Indian markets followed a 14-year low in Asian markets, sparked by a slump on Wall Street. The announcement of US tariffs and China’s retaliation have heightened concerns of a potential global recession, affecting investor sentiment globally, including in India.

Vinod Nair from Geojit Investments Limited noted, The market tumbled as the carnage over high US tariffs and retaliatory actions may trigger a trade war. Though the impact on India may be limited, caution is advised.

Broader Market and Sector-Wise Impact

The broader market also faced intense selling pressure, with the Nifty Midcap100 and Smallcap100 indices each falling over 3 per cent. Sector-wise, metal and realty stocks bore the brunt, with the Nifty Metal index plummeting 6.75 per cent and the Nifty Realty index dropping 5.69 per cent.

IT, banking, auto, and financial services sectors also recorded losses up to 4 per cent. Even a stronger-than-expected US job report failed to ease investor concerns, as trade tensions dominated the market narrative.

Currency and Commodity Market Reactions

The Indian rupee weakened slightly against the US dollar, closing at 85.84, down 61 paise from the previous close of 85.23. Jateen Trivedi of LKP Securities predicted a trading range of 85.25–86.25 for the rupee, amid heightened volatility.

Gold prices fluctuated between Rs 87,900 and Rs 88,500 as markets grappled with the implications of the US-China tariff war. The upcoming US CPI data and the RBI policy meet are expected to influence market sentiment further.