Stock Market Crash: The Indian stock market witnessed a massive bloodbath on April 7, as benchmark indices tumbled sharply amid a global market rout. At the very outset of Monday’s trading session, the BSE Sensex nosedived by more than 3,900 points during pre-open trade, touching around 71,449. Simultaneously, the NSE Nifty slumped over 1,100 points, slipping below the 21,758 mark. Both indices dropped more than 5%, sending shockwaves across Dalal Street.
By 9:15 AM IST, the Sensex was down by 2,639.95 points or 3.50%, trading at 72,724.74. The Nifty followed suit with a 3.79% plunge of 869.10 points, hovering at 22,035.35.
Major laggards in the Nifty pack included Trent, Tata Steel, JSW Steel, Tata Motors, and ONGC. All sectoral indices were deep in the red, with IT and metal sectors witnessing a staggering 7% decline each. Broader market indices fared no better—BSE MidCap and SmallCap indices plummeted around 6% each, intensifying the overall market gloom.
Global Cues and Trump’s Tariff Policy to Blame
Market experts attribute this sudden crash to the global equity sell-off, worsened by renewed fears of a trade war. Former U.S. President Donald Trump’s protectionist tariff policies have re-emerged as a source of anxiety for investors worldwide.
Asian markets mirrored this turmoil, with major indices in Japan, Hong Kong, and Australia also ending deep in the red. This widespread correction signals a growing concern among investors over rising geopolitical tensions and potential trade disruptions.
Weak Close on Friday Set the Tone
Friday’s closing was already a warning signal. The Sensex closed 930 points lower, down by 1.22%, at 75,364, while the Nifty slipped 345 points or 1.49% to end the week at 22,904. A broad-based sell-off across sectors weighed heavily on market sentiment.
Last Week’s Performance
Over the past week, the Sensex had already lost 2,050.23 points or 2.64%, and the Nifty was down 614.8 points, a 2.61% fall. Among the top 10 listed companies, nine suffered significant losses, with their combined market capitalization shrinking by Rs 2,94,170.16 crore.
FIIs Turn Net Sellers
According to stock exchange data, Foreign Institutional Investors (FIIs) were net sellers on Friday, offloading shares worth Rs 3,483.98 crore. The exodus of foreign capital further fueled the sell-off and compounded fears of a prolonged downturn.
With volatility expected to continue in the near term, experts advise caution. Global geopolitical concerns, along with economic uncertainties and investor sentiment, are likely to influence the markets this week. Investors are now closely watching for developments in U.S. policy, inflation trends, and corporate earnings.
