The Indian stock market plummeted on Monday as escalating trade tensions between the US and its trading partners sent shockwaves through global markets. The Sensex crashed nearly 3,000 points, while the Nifty tumbled over 1,000 points, wiping out approximately Rs 20 lakh crore of investor wealth within seconds. The market rout followed US President Donald Trump’s imposition of significant tariffs on trading partners, which sparked retaliatory measures from affected countries.
China condemned the US actions, accusing it of economic intimidation and disrupting global production stability. European leaders also criticized the tariffs, with German Economy Minister Robert Habeck calling the premise “nonsense.
In India, Congress leader Rahul Gandhi attacked Prime Minister Narendra Modi’s government for its handling of the economic situation. Gandhi highlighted the adverse effects on the stock market and noted that only a limited percentage of the population benefits from stock investments.
Asian markets suffered heavy losses, with shares in Taipei plunging 9.7% in their worst decline on record. Hong Kong’s Hang Seng Index fell 13.22%, its biggest drop in almost three decades.
Us tariffs impact Indian market
The Shanghai Composite Index also saw significant decreases, down 7.34%. The global market turmoil has raised fears of a worldwide recession as countries use tit-for-tat tariff measures. Despite the chaos, China’s Vice Commerce Minister Ling Ji assured US companies that their rights and interests would be protected, even as China retaliated with 34% tariffs on US imports.
Indian benchmarks logged their worst session in 10 months, with the Nifty 50 on track for its most substantial single-day percentage drop and the volatility index spiking to its highest level in the same timeframe. Mid and small-cap stocks were hit particularly hard, declining 20% and 23.6% from their all-time highs, respectively. Analysts suggest India will face the heat due to its interconnectedness in the global portfolio flows.
Market expert Ajay Bagga stated, “India will need a fiscal, monetary, and reform package to protect the domestic economy from this global economic winter threatening to settle in.”
As the situation unfolds, the global economic landscape remains on edge, with markets around the world reacting sharply to President Trump’s tariffs. The repercussions are being felt everywhere, and market experts suggest that countries, particularly India, need to undertake swift economic reforms to buffer themselves against this burgeoning crisis.
