Sharp Drop in Indian Stock Market Amidst Global Recession Fears Following Trump's Tariff Announcement; Nifty Falls 1000 Points, Investors Lose ₹19 Lakh Crore.
Market Cap Crash: The Indian stock market delivered a significant blow to investors on Monday, witnessing a nearly ₹19 lakh crore wealth erosion within just five minutes of market opening. The Nifty plunged approximately 1000 points, marking the steepest fall in the last 10 months. Heavy selling in blue-chip stocks like Reliance, TCS, and Infosys further amplified investor anxieties.
1. Global Recession Fears Intensify Concerns
The new tariff rules announced by the Trump administration encompass over 180 countries globally. This directly impacts inflation, corporate profits, and spending capacity. Experts believe that if this situation persists, the possibility of a global recession cannot be ruled out—and India will not remain unaffected.
2. All Eyes on the RBI Meeting
Expectations are high for a 25 basis point rate cut during the RBI MPC Meeting, scheduled from April 7th to 9th. Such a decision could provide relief to the stock market. Furthermore, the inflation and IIP data, to be released on April 11th, will offer insights into the economic direction.
3. Pressure Mounts from Global Sell-off
While Donald Trump termed the tariff decision as "bitter medicine" and downplayed the need for panic, major indices worldwide, from Wall Street to Nikkei and Kospi, experienced significant declines. The US NASDAQ fell by approximately 7%, while Australia's S&P 200 dropped 6.5%, and South Korea's KOSPI declined by 5.5%.
Experts warn that if the situation doesn't improve, the US market could face a major crash, reminiscent of the 1987 crisis.
