On April 7, 2025, India faced a massive stock market crash. This was triggered by tariffs imposed by US President Donald Trump on more than 180 countries worldwide. It all led to what many are calling an “economic nuclear war,” causing a sharp decline in the Indian stock markets, including the BSE Sensex and NSE Nifty, both of which fell by over 4%.
As a result, ₹19 lakh crore was wiped off from the Indian stock market. The total market capitalisation of companies listed on the BSE dropped from ₹403.34 lakh crore to ₹383.81 lakh crore.
Market Crash Today: What Really Happened?
The BSE Sensex and NSE Nifty started the day with significant losses, falling sharply in early trading. Mid-cap and small-cap stocks took even bigger hits. The BSE Midcap Index dropped more than 8%, and the BSE Smallcap Index fell by 10.5%.
Overall, the market showed a 1:10 advance-decline ratio, meaning for every one stock that went up, ten stocks fell.
The India VIX, which measures market fear, surged by nearly 55%.
Which Sectors Got Hit?
All major sectors on the NSE suffered. The Nifty Metal index was the hardest hit, with concerns about a possible US recession slowing down industrial demand. The Nifty IT sector also saw major losses as many IT companies rely heavily on the US market. Even defensive sectors like FMCG and pharma faced losses, but they weren’t as sharp.
Global Markets Also Affected
The effects of Trump’s tariffs spread around the world. Asian markets experienced their worst fall in 16 years. The MSCI Asia Pacific Index dropped 7.9%, the biggest fall since October 2008. Big companies like TSMC, Tencent, and Sony were among the biggest losers. Hong Kong’s Hang Seng Index plunged 10.7%, the worst drop since the global financial crisis. Almost every market was in the red.
US Stock Markets Also Hit
The US stock markets were also badly affected by Trump’s trade policies. People believe that Trump’s tariffs could lead to a loss of confidence in the US economy, damaging its relationship with global investors. It could destroy confidence in the US as a place to do business and invest money.
Conclusion
The Indian stock market faced a huge blow, losing ₹19 lakh crore in just one day. The sharp fall happened because of the tariffs imposed by US President Trump, which affected markets globally. This shows how quickly world events can impact markets everywhere.
Investors need to stay alert and ready for such ups and downs. Trump’s trade decisions have made it clear that the future could be full of uncertainty.
Source: Mint
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