Donald Trump infused bloodbath drove Indian markets to a 9-month low today. Touted as Black Monday the day witnessed tariffs setting off a sell-off in equities globally, and India was no exception.
In the early trade, the Sensex dropped 5 per cent lower at one point, but as the day progressed, it pared some of the losses and closed 3 per cent lower. The Sensex closed at 73,137.90 points, down 2,226 points. Similarly, the Nifty also slipped 3 per cent to close at 22,161.60 points.
Adding to the bearish sentiment, India VIX spiked by approximately 66%, hitting multi-month highs and signalling the potential for heightened volatility ahead—typically a negative indicator for market direction. On the sectoral front, metals, realty, and auto stocks were among the hardest hit, while broader indices also recorded losses in the range of 3% to 3.5%.
“The market turbulence was further aggravated by China’s announcement of retaliatory tariffs on U.S. goods, raising concerns over a possible escalation into a broader trade war. This development has sparked fears of global economic disruptions, and the impact is being felt across international markets—a trend that could persist given the current uncertainty,” Ajit Mishra – SVP, Research, Religare Broking stated.
The domestic key equity indices recovered on closing even as global markets nosedived following Trump’s tariff tornado. On a relative basis, the economic risks to India are among the lowest, Axis Bank’s Chief Economist Neelkanth Mishra told NDTV Profit. The bigger concern is the impact on Indian markets as they are more integrated with the world than the economy is, he said.
On Monday, the Nifty 50 plunged 743 points or 3.24% to settle at 22,161.60, while the BSE Sensex recovered from a low of 71,425.01 to close with a loss of 2,226.79 points or 2.95% to finish at 73,137.90.
The Nifty Metal was the worst hit among the sectoral indices, falling 6.42% to 7,874.20 level in Monday’s trade. The index is down 10% in the last two sessions.
It was followed by Nifty Realty declined 5.45% to 778.20 level. The sell-off in Nifty IT continued for the third session as well, dropping 4.3% in the last three trading days.
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The Nifty Bank fell 1,643 points or 3.19% to close at 49,860.10,
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