Bloodbath on D-Street: Sensex Crashes 3,300 Points, Nifty Sinks Below 21,800 Amid Trump Tariffs & Global Jitters

Mumbai, April 7: Indian equity markets witnessed a historic meltdown on Monday as benchmark indices nosedived in early trade, echoing panic across global markets. The Sensex crashed a staggering 3,939.68 points or 5.22% to hit an intraday low of 71,425.01, while the Nifty 50 tanked 1,160.80 points or 5% to 21,743.65 — marking its sharpest opening since the COVID-19 crash in March 2020.

Investor wealth worth Rs 16.19 lakh crore was wiped out in just hours, as fears of a global trade war intensified after the US and China exchanged fresh rounds of tariffs. All 30 Sensex constituents ended in the red, with Tata Steel plunging over 10%, followed by Tata Motors, Infosys, HCL Tech, and Reliance Industries, among others.

What Triggered the Market Crash?

1. Trump’s Tariff Shock and China’s Retaliation
   US President Donald Trump reignited global trade tensions by slapping steep tariffs on about 60 countries — including 26% on Indian goods and 54% on Chinese imports, citing “unfair trade practices.” In a swift response, China hit back with 34% retaliatory tariffs on US imports, effective April 10.

Trump brushed off the market rout, stating:

“Sometimes you have to take medicine to fix something. Countries are dying to make a deal.”

Market experts warn that this tit-for-tat could spiral into a full-blown trade war, rattling economies worldwide.

2. Rising Recession Fears in the US
   Global investors are also spooked by mounting recession concerns in the US — the world’s largest economy.

Goldman Sachs raised its recession forecast to 45% (from 35%) for the next 12 months.

JPMorgan Chase warned of a possible recession within 2025.

The S&P 500 and Dow Jones both witnessed steep drops on Friday — the S&P shedding nearly 6% and the Dow tumbling over 2,000 points.

3. Global Sell-Off Intensifies
   The ripple effect of the tariff war was felt across Asian markets:

Hang Seng (Hong Kong): ↓ 11%

Nikkei 225 (Japan): ↓ 7%

Shanghai Composite: ↓ 6%

Kospi (South Korea): ↓ 5%

Japanese stock futures even triggered lower circuit halts in early trade, reflecting the extreme panic selling.

4. India VIX Soars 57%
   The India VIX, which measures market volatility, surged 57% to 21.62, indicating extreme fear and uncertainty among traders and investors.

Technical Breakdown: Nifty Breaches Key Support
Anand James, Chief Market Strategist at Geojit Financial Services, noted that Nifty’s sharp fall below 21,800 broke crucial support levels much earlier than expected.

“The index has crashed from +2 standard deviation to -2 in just 10 days — a rare technical event. While a bounce back to 22,165 or 22,522 is possible, it heavily depends on how the market digests further global cues,” he said.

Top Losers on Sensex Today
Stock Fall (%)
– Tata Steel -10.2%
– Tata Motors -9.1%
– Infosys -8.4%
– HCL Tech -7.9%
– Reliance Industries -7.2%
– Tech Mahindra -6.8%
– L&T -6.4%

Conclusion: Caution Ahead
Today’s meltdown has sent shockwaves through Dalal Street, with sentiment deeply bruised and volatility at multi-month highs. With escalating trade tensions and looming recession fears, analysts suggest investors should tread cautiously, avoid panic selling, and wait for clarity on geopolitical developments.

Stay tuned for more updates as this global financial drama unfolds.