Stock Market Crash: Sensex Falls 2,227 Points, Investors Lose Rs 14 Lakh Crore as Trade War Fears Shake Global Markets

Stock Market Crash: Sensex Falls 2,227 Points, Investors Lose Rs 14 Lakh Crore as Trade War Fears Shake Global Markets

Stock Market Crash Today: Sensex Plunges 2,227 Points, Investors Lose Rs 14 Lakh Crore in Single Day Bloodbath

In a historic market rout, the Indian stock markets witnessed a massive crash on Monday, leaving investors reeling from heavy losses. The BSE Sensex nosedived by 2,227 points, closing at 73,137.90, marking a sharp decline of 2.95%, while the NSE Nifty50 dropped by 743 points to end the day at 22,161.60, a fall of 3.24%. This was the largest single-day decline in nearly 10 months, triggering panic among market participants and erasing investor wealth worth Rs 14 lakh crore in just one trading session.

The meltdown followed a severe global selloff triggered by escalating trade tensions between the United States and China. US President Donald Trump’s unexpected tariff hike announcements and China’s immediate retaliatory tariffs have sparked fears of a full-blown trade war, casting a shadow over global economic growth. This uncertainty has shaken investor sentiment across global financial markets, including India.

In Monday’s bloodbath, the market capitalization of companies listed on the Bombay Stock Exchange (BSE) plunged significantly by Rs 14,09,225.71 crore, bringing the total valuation down to Rs 3,89,25,660.75 crore, equivalent to approximately USD 4.54 trillion. Of the 30 constituents on the BSE Sensex, only Hindustan Unilever managed to close in the green, showing a marginal increase. On the contrary, Tata Steel led the losers with a sharp decline of 7.33%, followed by heavy losses in Larsen & Toubro, Tata Motors, Kotak Mahindra Bank, Mahindra & Mahindra, Infosys, Axis Bank, ICICI Bank, HCL Technologies, and HDFC Bank.

Market experts attribute the plunge to multiple factors, the foremost being the entry of the US Nasdaq index into bear market territory last Friday, having dropped more than 20% from its recent highs. This, compounded with the unexpected and extensive tariff hikes announced by the US, heightened fears of a global economic slowdown. Federal Reserve Chair Jerome Powell’s caution about the inflationary impact of these tariffs added fuel to the fire, deepening concerns about the U.S. economic outlook.

The turmoil wasn’t limited to the US alone. Asian markets mirrored the bearish sentiment with Hong Kong’s Hang Seng index crashing over 13%, Tokyo’s Nikkei 225 falling nearly 8%, the Shanghai SSE Composite Index dropping over 7%, and South Korea’s Kospi shedding more than 5%. European markets, too, faced sharp declines of up to 6%, while American futures indicated continued weakness, with Nasdaq futures down 4% and S&P 500 futures off by 3.1%.

Another major concern driving the selloff was rising fear of a US recession. As investors brace for the upcoming US CPI report, which is expected to show a 0.3% increase for March, there are growing worries that the newly announced tariffs could lead to price spikes across multiple sectors—from essential food items to automobiles. These cost increases, along with reduced profit margins, are expected to impact the upcoming earnings season in the US, where 87% of listed firms are set to announce their results between April 11 and May 9.

Adding to the global woes, the commodities market also collapsed due to expectations of lower demand and global economic contraction. Brent crude prices declined by 6.5%, WTI fell by 7.4%, while gold and silver dropped 2.4% and 7.3% respectively. Industrial metals were not spared either, with copper plummeting 6.5%, zinc down 2%, and aluminium sliding by 3.2%.

Meanwhile, investor preference shifted dramatically towards safe-haven assets amid global uncertainty. The demand for government bonds surged, pushing the US 10-year Treasury yield down by 8 basis points to 3.916%. The increased trading in Fed funds futures indicated expectations of a potential 25 basis point rate cut by the Federal Reserve within the year, signaling that markets are betting on accommodative policy to counter the slowdown.

The escalation of the US-China trade war added further pressure, with China retaliating against US tariffs by imposing duties on a range of American goods. This tit-for-tat response has raised alarm bells over prolonged trade disruptions, affecting global manufacturing supply chains, reducing corporate earnings, and dampening demand across key markets.

Back home in India, sectoral indices witnessed massive sell-offs. The BSE Metal index crashed 6.22%, realty fell 5.69%, commodities were down 4.68%, industrials lost 4.57%, consumer discretionary declined 3.79%, auto slipped 3.77%, bankex dipped 3.37%, IT dropped 2.92%, tech decreased 2.85%, and the BSE Focused IT index slid by 2.63%. Broader indices also faced the heat, with the small-cap index losing 4.13% and mid-cap index dropping 3.46%.

Vinod Nair, Head of Research at Geojit Financial Services, noted that sectors like IT and metals have underperformed due to heightened risks of inflation and slower growth, potentially leading to a recession in the US. While India’s economy may remain relatively insulated, Nair advised investors to remain cautious and focus on domestic themes for potential rebounds once market stability returns.

Looking ahead, market participants will be closely watching key events this week, including the conclusion of the Monetary Policy Committee (MPC) meeting on April 9, followed by the release of critical economic indicators—Index of Industrial Production (IIP) and Consumer Price Index (CPI) data on April 11. Adding to the volatility, the Q4 earnings season kicks off with TCS announcing its results on April 10.

For more updates and detailed video analysis on today’s stock market crash, visit our YouTube channel THE OLIGO.