Mumbai (Maharashtra) [India]: Indian stock markets witnessed a sharp nosedive on Monday, mirroring the global equity meltdown triggered by US President Donald Trump’s sweeping tariff announcement. The Nifty 50 index plunged 5%, marking one of its steepest opening drops since the COVID-19 pandemic, while the BSE Sensex sank over 5.29%.
- Nifty 50 opened at 21,758.40, a decline of 1,146.05 points
- Sensex opened at 71,379.8, down 3,984.80 points
Global Panic Spills into Indian Markets
The selloff was ignited by what analysts are calling an “economic-nuclear” move — the announcement of the highest tariffs of the century by the Trump administration. The panic that followed wiped off USD 5.4 trillion in value from US markets over just two days, triggering contagion across Asian and global exchanges.
Ajay Bagga, Banking and Market Expert, commented:
“India will face the heat, not due to domestic reasons, but as an interlinked chain in the global portfolio flows… We need a fiscal, monetary and reform package to shield our economy from this global economic winter.”
He added that the Trump tariffs, if not rolled back, could severely damage global trade flows and trigger long-term recessionary effects across emerging markets like India.
Widespread Asian Market Carnage
The fallout was evident across Asia:
- Japan’s Nikkei 225: ↓ 5.79%
- Hong Kong’s Hang Seng: ↓ ~10%
- Taiwan Weighted Index: ↓ 9.61%
- South Korea’s KOSPI: ↓ 4.14%
- China’s Shanghai Composite: ↓ 6.5%
- Australia’s ASX 200: ↓ 3.82%
Markets reacted in unison, as fears of a global economic slowdown sparked investor flight to safety.
Technical Breakdown in Indian Equities
Sunil Gurjar, SEBI-registered analyst and founder of Alphamojo Financial Services, noted:
“The Nifty 50 formed a big red candle, breaking one key support and heading toward a second. A further breakdown would confirm a strong continuation of the downtrend.”
The sentiment remains firmly bearish, with traders and institutional investors bracing for further downside.
Oil Prices and US Futures Signal More Turmoil
Even Brent crude oil wasn’t spared — slipping to a 52-week low at USD 63.97, reflecting the broader risk-off sentiment and fears of demand slowdown.
Meanwhile, Dow Jones futures were down 2.22%, hinting at more pain ahead for US markets.
Outlook: Will India Respond with Reforms?
Market experts believe India needs to urgently respond with a stimulus or reform package. While hopes remain pinned on a rollback or moderation of Trump’s tariff policy, US officials have dismissed such expectations, stating the measures will remain “for the next few weeks or months.”