Sensex and Nifty crash as Trump tariffs trigger global sell-off

Benchmark stock indices in India experienced a dramatic plunge on Monday, mirroring the downturn in global markets as investor fears mounted over US President Donald Trump’s tariff announcements. The S&P BSE Sensex sank by 2,564.74 points to 72,799.95, while the NSE Nifty50 dropped 831.95 points to 22,072.50 as of 9:24 AM, hitting their lowest levels in nearly ten months. 

Also Read: Sensex plunges 2,600 points amid US recession fears, market cap drops by Rs 17 lakh crore

This steep fall erased a staggering Rs 19 lakh crore from the total market capitalization of companies listed on the Bombay Stock Exchange(BSE). Analysts warn that the volatility may persist, possibly dragging markets even lower in the coming days. 

Experts emphasized the global nature of the turmoil, noting that extreme uncertainty is fuelling market instability. They recommended that investors adopt a “Wait and Watch” approach during this unpredictable phase. 

All 13 key sectoral indices were in negative territory, with broader markets also taking a hit. The small-cap index plummeted 10%, and mid-caps by 7.3%. not a single stock on the BSE Sensex registered gains. Among the worst hit were Tata Steel, which plunged 11.25%, followed by Tata Motors (down 8.24%), Tech Mahindra (6.70%), Infosys and HCL Tech (both down 6.00%). Even typically stable sectors failed to shield investors from the widespread sell-off, with major losses seen in banking, tech and auto sectors. 

Despite the gloom, experts further state that some domestic-focused sectors such as financial services, aviation, hospitality, select automobile segments, cement, defense and digital platforms firms might endure the crisis better. It is also pertinent to note that the pharmaceutical sector could remain largely unaffected as of now. 

International markets were also in distress with Asian markets tumbling significantly. The MSCI Asia ex-Japan index fell 6.8%, and Japan’s Nikkei 225 dropped 6.5%. The slide was triggered by comments from US Federal Reserve Chair Jerome Powell, who expressed concerns that Trump’s new tariffs, described as larger than anticipated, could have serious implications for inflation and overall economic growth in the US. 

The Nasdaq slipped into bear market territory by Friday, further compounding global concerns, as commodity prices like oil also declined sharply. 

Still, there are a few silver linings. It is pointed out that Trump’s tariff measures may not last long. Additionally, since India’s exports to the US form only about 2% of its GDP, the direct impact on the Indian economy may be limited. India is actively working on a Bilateral Trade Agreement with the US, which, if successful, could reduce tariff pressures and benefit Indian trade in the long run.