The benchmark domestic equity indices plunged around three per cent today amid escalating trade tensions and mounting recession concerns in the US.
However, domestic equities remained more resilient as compared to global peers that witnessed sharper cuts. The 30-share index at the Bombay Stock Exchange, Sensex, tumbled 2,227 points to close at 73,138.
The National Stock Exchange Nifty-50 plummeted 743 points to settle at 22,162. The broader market indices at the BSE also witnessed selling pressure. The Mid-Cap index dipped over 3.4 per cent, and the Small-Cap index dropped over 4.1 per cent.
Among the sectoral indices, Nifty Bank lost 3.19 per cent, while the Financial Services index declined 3.49 per cent.
Metal (down 6.75 per cent), Realty (down 5.69 per cent), Media (down 3.94 per cent), Auto (down 3.78 per cent), Private Bank (down 3.47 per cent), PSU Bank (down 2.84 per cent), Pharma (down 2.75 per cent) and IT (down 2.51 per cent) ended with massive losses.
Nasdaq enters bear market.
The Nasdaq index officially entered a bear market on Friday, falling more than 20% from its recent peak. The decline followed U.S. President Donald Trump’s announcement of sweeping tariffs earlier in the week, which sparked fears of a global economic slowdown. The scale and scope of the tariffs surprised investors, triggering sharp selloffs across global markets.
Federal Reserve Chair Jerome Powell said the tariffs were “larger than expected” and warned they could significantly impact both inflation and economic growth, adding to the uncertainty surrounding the U.S. economic outlook.
Global selloff.
Indian equities mirrored sharp declines across global markets, with major Asian indices plunging across the board. Japan’s Nikkei dropped 7.7%, South Korea’s Kospi fell 5.6%, and China’s Shanghai Composite slid 7.3%. Hong Kong’s Hang Seng index tumbled over 13%.
U.S. futures also extended losses, with Nasdaq futures down 3.5% and S&P 500 futures falling 3.1%. In Europe, the pan-European STOXX 600 slumped 5.8%, marking its fourth straight session of losses and its steepest one-day fall since the COVID-19 pandemic.
Recession fears overshadow inflation worries.
Market participants now believe that recession concerns outweigh short-term inflation risks. While U.S. consumer price index (CPI) data, due later this week, is expected to show a 0.3% increase for March, analysts fear that tariffs will soon drive up costs significantly across sectors — from groceries to automobiles.
Sharp plunge in global commodity prices.
Global commodity prices tumbled amid mounting fears of weakening demand and a looming economic slowdown. Brent crude fell 6.5%, WTI dropped 7.4%, while gold slipped 2.4% and silver plunged 7.3%. Base metals also saw steep declines, with copper down 6.5%, zinc 2%, and aluminium 3.2%, as escalating trade tensions and recession concerns rattled investor confidence.
Belated momentum helps market close about 3% lower.
A delayed rally towards the closing hours helped Dalal Street somewhat pare losses during trade on Monday.
BSE Sensex shed 2,226.79 points to close 2.95% lower at 73,137.90. The 30-share benchmark index had a sombre Monday with the chart being entirely in red. Tata Steel emerged as the biggest loser when it closed 7.73% lower at ₹129.60. Larsen & Turbo (down 5.78%), Tata Motors (5.54%), Kotak Mandira Bank (4.53%), Infosys (3.75%) and ICICI Bank (3.54%) were among the companies that suffered the most in Monday’s rout. Hindustan Unilever sustained its momentum of a rally that started in the later hours whilst Zomato lost out. HUL emerged as the only scrip in the green having closed 0.25% higher at ₹2,250.15.
An upward rally in the Nifty50 ensured that it did not fell below the 22,000-mark. It closed 3.24% lower at 22,161.60 after having lost 742.85 points at trade on Monday.
Tata Motors’ shares decline nearly 11.7% intraday after Jaguar Land Rover halts exports to U.S.
Shares of the car maker was trading 6.43% lower at ₹574.40 a piece on the BSE Sensex after opting to halt sales of the premium Jaguar Land Rover cars to the North American country. Earlier in the day, the scrip had slipped about 11.7% to ₹542.55 apiece.
On the Nifty50 as well, Tata Motors finds itself trading 6.41% lower at ₹574.50 apiece. For a peer comparison, the Nifty Auto index was trading 4.21% lower at 19,725.15.
Sensex, Nifty50 pare intraday losses, down less than 4%
The BSE Sensex is trading 3.63% lower having shed 2,732.40 points at 72,632.29. It had earlier declined about 5.5% to an intraday low of 71,449.94 points. At about 2:15 p.m., Hindustan Unilever was the only stock in green on the 30-share benchmark index trading 0.69% up at ₹2,260.00 a piece.
Meanwhile, Nifty50 is down 3.86% at 22,020.50 after having given up on 883.95 points. The indice had earlier slipped to an intraday low of 21,743.65 – an intraday low of 5.07% over previous close.
European shares dive to 16-month low as investors grapple with fears of recession with Trump tariffs.
The pan-European STOXX 600, opens new tab slumped 5.8% at 7:22 a.m. GMT, after registering its steepest one-day percentage decline since the COVID-19 pandemic on Friday.
U.S. President Donald Trump showed no sign of backing away from the tariff plans despite retaliation from China, pushing investors to price in interest rate cuts by the European Central Bank and the Federal Reserve.
Nikkei 225 slumps to 1.5 year low.
Japan’s Nikkei share average slumped to a one and half year with Japanese bank stocks diving more than 17% at one point, as concerns loom over a tariff-induced global recession continued to unsettle the markets.
The Nikkei opens new tab dropped as much as 8.8% to hit 30,792.74 for the first time since October 2023, before ending the day down 7.8% at 31,136.58. All 225 component stocks of the index finished in the red.
BSE Sensex down more than 4.3%.
The 30-share benchmark index is down more than 4.3% and has shed more than 3,150 points. Tata Steel, Tata Motors and Larsen & Turbo among the major losers with Hindustan Unilever nearly flat but volatile.
