Indian stock markets opened the week with a massive crash, shaken by global panic following former US President Donald Trump’s announcement of sweeping tariffs on all trade partners. The sharp move has raised fears of a global trade war and looming recession, leading to a massive sell-off across global markets.
Indian Markets Suffer Worst Opening Since COVID-19
On Monday morning, Sensex dropped by 3,939.68 points, touching 71,425.01, while Nifty plunged 1,160.8 points to 21,743.65, reflecting nearly a 5% drop for both major indices.
This sharp fall marks the worst single-day opening for Indian markets since the COVID-19 pandemic began, with investor sentiment severely impacted by global trends and U.S. economic policy concerns.
IT and Auto Stocks Among Top Losers
Sectors most exposed to the U.S. economy bore the brunt.
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Tata Steel declined over 8%,
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Tata Motors fell by more than 7%,
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IT majors like Infosys, Tech Mahindra, HCL Technologies, and TCS dropped significantly,
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Reliance Industries and Larsen & Toubro were also among the top laggards.
These companies, many of which earn a major chunk of their revenue from the U.S., faced investor concerns over rising tariffs and reduced global demand.
Trump Tariff Announcement Triggers Global Market Panic
Donald Trump’s tariff announcement on all trade partners has led to market turmoil worldwide. The move has already triggered retaliatory measures from nations like China, Canada, and Mexico, with fears escalating that this could spiral into a full-scale trade war.
Asian, US Markets Already Hit Hard
Asian indices reacted sharply:
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China’s index dropped 10%
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Japan fell by 8%
In the U.S., Friday saw a bloodbath:
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S&P 500 fell 6%
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Dow Jones plunged over 2,000 points, its worst week since the pandemic.
Markets are reacting not only to the trade war but also to expectations of rising inflation and slowing global growth.
China Responds with 34% Tariffs Starting April 10
Adding to the tension, China announced a 34% reciprocal tariff on all U.S. imports, effective April 10. This has increased investor concerns about a potential global economic slowdown. “This escalates the stakes in the ongoing trade war and raises concerns about a potential global recession,” said Vikas Jain, Head of Research at Reliance Securities, as quoted by PTI.
Recession Fears, Inflation Pressures Build
Economists believe the rise in tariffs from both sides will:
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Increase global inflation
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Hit profit margins of companies
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Cause negative earnings revisions in the coming quarters
The U.S. Consumer Price Index is expected to show a 0.3% increase for March, but experts warn this could go much higher as tariffs take full effect.
Goldman Sachs, Fed Chair Powell Issue Warnings
Analysts at Goldman Sachs said many companies may not offer earnings guidance for Q2 and the full year due to uncertainty. They also predicted reduced profit margins.
Federal Reserve Chair Jerome Powell also warned that Trump’s tariffs are “larger than expected”, adding to an uncertain economic outlook.
Nasdaq Enters Bear Market, Commodities Plunge
Following Trump’s announcement:
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The Nasdaq index entered bear market territory
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Oil prices and other commodities tumbled, reflecting investor fears of slowed demand
