Indian benchmark indices, Sensex & Nifty opened with massive decline on Monday after global market decline triggered by soaring trade war fears and rising recession worries in the US. It led to a huge drop of 19.4 lakh crore in the market cap of all BSE-listed firms as they plunged to Rs 383.95 lakh crore. All the leading sectors plunged in red zone as Nifty metal index sank 8%, Nifty IT slipped over 7%, Nifty Oil, Nifty Auto, Realty dived over 5% in trade on Monday. When it comes to broader market, small cap index slipped approximately 10% and mid cap index slid nearly 8%.
BSE Sensex declined 2756.06 or 3.66% to 72,608.63 and Nifty50 tanked 893.95 points or 3.90% to 22,010 at the time of writing the story. Nifty Bank plunged 1947.3 points to 49,555.40 and Nifty Midcap slipped 2067 points to 48,578 in late afternoon trade today. Hindustan Unilever (HUL), Delhivery Ltd., and Vedant Fashions Ltd emerged as the top gainers in the weak market with gains of up to 3.8% today.
Tata Steel, Tata Motors, Trent, JSW Steel, Hindalco, and Larsen turned out to be laggards as these shares declined up to 16% today. All the 30 constituents of Sensex were seen trading in red zone.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “Markets are going through extreme volatility driven by deep uncertainty. No one knows how this tariff turmoil will evolve, and that is keeping investors on edge globally.”
Meanwhile, Goldman Sachs sought to revised forecast and expected the possibilities of US recession at 45% in the coming 12 months, surged from the previous estimate of 35%. On the other hand, JPMorgan warned that US economy is likely to enter a recession in 2025 itself.
Vikas Jain, Head of Research at Reliance Securities said, “The US S&P 500 dropped 6% on Friday, while the Dow Jones fell over 2,000 points — its worst performance since the COVID-19 crisis. China’s decision to impose a 34 percent reciprocal tariff on all US imports starting April 10 has only made matters worse,” according to PTI.
Meanwhile, in US, Nasdaq witnessed sharp fall of more than 20% from highs amid higher than expected tariff announcement by US President Donald Trump that triggered global economic slowdown fears.
Meanwhile, Gaurav Goel, (Entrepreneur and SEBI Registered Investment Advisor) said, “Indian markets are seeing a massive red this morning. Trump Trade Tarffs (TTT) are creating havoc world over and we are no exception. US is the biggest sufferer In this process and Americans are the biggest victim. As I see, India will be a big winner of TTT, once dust settles down. India is already negotiating and comprehensive trade deal with US. Trade treaties with other nations are also getting accelerated. The tariffs imposed on India, vis a vis other competing nations in exports to US, are lower and thus help us gain advantage. Crude prices have come off substantially.”
This could well be a blessing in disguise for long term investors. These are all money making opportunities in long run. If you have spare funds do not hesitate to deploy 1/3 tranche today itself, added Gaurav Goel.
In Asia, Japan’s Nikkei fell nearly 7%, South Korea dived 5%, and China’s stock plunged nearly 7%. Meanwhile, Hang Sang index slipped sharply by 10.5%.
On the other hand, market expects are anticipating recession fears as a larger worry than the short-term inflation risk. The yet to be released US Consumer Price Index or CPI for March is likely to post a moderate 0.3% surge. Experts feel the newly levied tariffs may soon trigger a steep rise in costs across several sectors that may include automobiles and groceries.
It is worth noting that Ethereum slipped 18.4% and Bitcoin fell 9.72% after the latest US tariff announcement. The latest tariffs has reportedly escalated the effective import tax rate to 22%, highest since 1910.
Disclaimer: The story highlights stock market decline and should not be considered as investment advice by the Moneydaily.in or the Author. Moneydaily.in and the author will not be held responsible for any losses caused as a result of decisions based on the above information. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.
Recommended: Sensex Falls: Why Top Pharma Stocks Gained Up To 8%
Leave a Reply