Key Points
- Indian stock markets witnessed their steepest drop since the COVID-19 pandemic, with Sensex falling 3,692 points and Nifty losing 1,142 points.
- Global markets, including the U.S., Europe, and Asia, are reeling under the impact of new tariffs imposed by the U.S. and retaliatory measures by China.
- The U.S. markets lost over $6 trillion in valuation last week, with fears of a global recession escalating.
- Crude oil prices dropped below $60 per barrel, while gold and bonds saw increased demand as safe-haven assets.
New Delhi: The Indian stock market experienced a massive crash on Monday morning, April 7, 2025, as the Sensex nosedived by 3,692 points (4.83%) to trade at 72,672.97. The Nifty also plummeted by 1,142 points (4.91%), opening at 22,066. These sharp declines follow a global market rout triggered by U.S. President Donald Trump’s sweeping tariff announcements and growing fears of a global recession.
Global Market Turmoil
The fallout from Trump’s tariffs has sent shockwaves across international markets:
- The S&P 500 futures fell by 4.31%, while Nasdaq futures dropped 5.45% over the weekend.
- Japan’s Nikkei index plunged by 7.8%, its lowest level since late 2023.
- South Korea’s Kospi index declined by 4.6%, while European markets also recorded significant losses.
The tariffs include a baseline 10% duty on all U.S. imports, with steeper rates ranging from 11% to 50% for specific nations like China (34%) and Japan (24%). China has retaliated with similar measures, escalating fears of a prolonged trade war.
Impact on Indian Markets
Indian equities mirrored the global sell-off:
- Foreign Institutional Investors (FIIs) sold shares worth ₹3,484 crore on Friday.
- Crude oil-sensitive stocks like ONGC and Oil India saw sharp declines as Brent crude prices fell further.
- The Nifty50 has now erased nearly half of its recovery from March lows and is trading near critical support levels.
Market analysts warn that continued volatility could push indices further down unless global trade tensions ease or central banks intervene to stabilize economies.
Economic Indicators and Recession Fears
The tariff-induced market crash has heightened concerns about a potential global recession:
- The U.S. Federal Reserve is under pressure to cut interest rates as early as May to counteract economic slowdown risks.
- Analysts at JPMorgan have raised the probability of a U.S. recession to 60%, while Goldman Sachs predicts a 35% chance of recession within the next year.
Safe-Haven Assets Surge
Amid the chaos, investors are flocking to safe-haven assets:
- Gold prices have rebounded after hitting three-week lows last week.
- Bond yields have fallen significantly as demand for government securities rises.
What Lies Ahead?
The week ahead is critical for Indian markets as investors await:
- The RBI Monetary Policy Committee’s meeting outcome on April 9.
- Key economic data releases such as IIP and CPI figures on April 11.
- Quarterly earnings reports from major companies like TCS on April 10.
Market participants are closely monitoring these events for signs of economic stability amidst global uncertainty.
