On April 7, 2025, Indian stock markets experienced a significant downturn, with the Sensex plummeting 2,226.79 points to close at 73,137.90, and the Nifty dropping 742.85 points to settle at 22,161.60. This decline mirrored a global sell-off triggered by U.S. President Donald Trump’s announcement of sweeping tariffs on all trade partners, escalating fears of a worldwide trade war.
The tariffs led to retaliatory measures from countries like China, Canada, and Mexico, intensifying concerns about a potential global recession. Major Asian markets, including Japan and China, also witnessed substantial losses, with indices falling by 10% and 8%, respectively. In the U.S., the S&P 500 dropped by 6%, and the Dow Jones fell over 2,000 points, marking its worst week since the COVID-19 crisis.
In India, sectors heavily reliant on international trade were among the hardest hit. Tata Steel’s shares declined by over 9%, while Tata Motors saw an 8% drop. Other major companies, including Larsen & Toubro, HCL Technologies, Kotak Mahindra Bank, Infosys, ICICI Bank, Axis Bank, Reliance Industries, and Adani Ports, also recorded significant losses.
Financial experts attribute the market downturn to the escalating trade tensions and the potential for increased inflation and slowed global growth resulting from the new tariffs. Investors are particularly concerned about the broader economic implications, including the possibility of a global recession.
The volatility index, often referred to as the “fear gauge,” rose sharply, indicating heightened investor anxiety. Analysts caution that the ongoing trade disputes could lead to further market instability and economic challenges in the near future.
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