Crime Today News
Markets crash as US-China trade tensions escalate, Sensex drops 2,226.79 points, Nifty 50 tumbles 742.85 points.
| Photo Credit:
iStockphoto
Markets crashed on Monday, with the Sensex plummeting 2,226.79 points (2.95 per cent) to close at 73,137.90 and Nifty 50 tumbling 742.85 points (3.24 per cent) to end at 22,161.60, as escalating trade tensions between the US and China triggered a global sell-off.
The market opened with a significant gap down, with the Sensex starting at 71,449.94 compared to its previous close of 75,364.69, and the Nifty beginning at 21,758.40 versus its prior close of 22,904.45. The indices touched day’s lows of 71,425.01 and 21,743 respectively before recovering slightly by close.
“The market tumbled as the carnage over high US tariffs and the retaliation by other countries may kickstart a trade war,” said Vinod Nair, Head of Research at Geojit Investments Limited.
The market-wide panic was evident as the India VIX surged a staggering 65.70 per cent to 22.79, reflecting heightened investor nervousness. The sell-off was broad-based with 3,515 stocks declining against just 570 advances on the BSE, while 775 stocks hit 52-week lows compared to only 59 reaching 52-week highs.
Only two stocks managed to resist the downward pressure in the NSE – Hindustan Unilever (up 0.24 per cent at ₹2,250) and Zomato (up 0.22 per cent at ₹211). Among major losers, Trent led the decline with a 14.70 per cent drop to ₹4,745.05, followed by JSW Steel (-7.53 per cent), Tata Steel (-7.26 per cent), Hindalco (-5.92 per cent), and Tata Motors (-5.34 per cent).
Sectoral indices painted a sea of red with Nifty Metal (-6.75 per cent), Realty, Auto, Financials, and IT all registering sharp losses between 3-5 per cent. Broader markets fared worse, with the Nifty Midcap 100 falling 4.76 per cent to 48,235.80.
“Global markets are in turmoil following Trump’s tariff hike and retaliatory measures. The sell-off is sentiment-driven, exacerbated by fears of a prolonged trade war and global liquidity tightening,” explained Jaspreet Singh Arora, CIO, Equentis Wealth Advisory Services.
The trigger for the global rout was China’s announcement of 34 per cent tariffs on all US products, matching the rate President Trump had imposed earlier in the week on Chinese imports. This escalation has intensified fears of a full-blown trade war and potential global recession.
“Sectors like IT and metals have underperformed relative to the broader market due to the risk of high inflation with slower growth that may result in a potential recession in the US,” Nair added.
The currency market also felt the impact, with the rupee weakening by 0.50 against the dollar. “Rupee traded weak below 85.80 as global capital markets witnessed a sharp plunge following escalation in US-China tariff tensions. The heightened uncertainty has triggered risk-off sentiment, leading to outflows from emerging markets,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
Commodities markets were equally volatile. Gold fluctuated between ₹87,900 and ₹88,500 as investors sought safe-haven assets. Meanwhile, crude oil continued its decline, with WTI falling below $60 per barrel. “WTI crude oil losses deepened on Friday, with prices tumbling 7.5 per cent to $60.45/bbl, the lowest level in four years,” noted Kaynat Chainwala, AVP-Commodity Research at Kotak Securities.
Technical analysts suggest the market may see continued volatility. “Technically, Nifty found support around the multiple support zones near 21,700. In the short term, the trend remains weak,” said Rupak De, Senior Technical Analyst at LKP Securities.
Market participants will now closely monitor the RBI monetary policy outcome expected later this week and the upcoming Q4FY25 earnings season, which could provide fresh direction amid the global uncertainties.
Shrikant Chouhan of Kotak Securities cautioned, “We believe that the current market environment is extremely volatile and uncertain; hence, traders may prefer to adopt a cautious stance in the near future.”
Despite the carnage, some analysts believe India’s fundamentals remain relatively strong. “For long-term investors, it’s time to stay disciplined. Focus on asset allocation and avoid impulsive moves. For short-term traders, elevated volatility calls for caution,” advised Arora.
More Like This
Published on April 7, 2025
📰 Crime Today News is proudly sponsored by DRYFRUIT & CO – A Brand by eFabby Global LLC
Design & Developed by Yes Mom Hosting
