Trump's Tariff War and Recession Fears Trigger Sharp Decline in Indian Stock Market, Wiping Out ₹18 Lakh Crore in 10 Minutes.
Stock Market Crash: US President Donald Trump's aggressive trade war policies and fears of a recession in the US sent shockwaves through global stock markets on Monday. India was directly impacted, experiencing a significant drop as soon as the market opened. Declines in Wall Street and Asian markets fueled anxiety among Indian investors.
₹18 Lakh Crore in Investor Wealth Vanishes in 10 Minutes
In just 10 minutes, the market capitalization of BSE-listed companies plummeted by ₹18,07,639 crore. The total market capitalization (Mcap) stood at ₹404.09 lakh crore on Friday, falling to ₹386.01 lakh crore on Monday. This was a significant shock for investors, leaving them with little time to react.
IT and Metal Sectors Hit Hardest
- The IT and metal indices suffered the most significant losses in this sharp decline.
- The Nifty IT Index plunged 5%, opening at 31,307.95, compared to its Friday closing of 33,511.40.
- The Nifty Metal Index dropped 6%, reaching 7,691.00, a new 52-week low.
Trump Tariffs Raise Concerns about Deeper Economic Impact
Federal Reserve Chairman Jerome Powell warned on Friday that the new tariffs imposed by Trump are "larger than expected" and could impact inflation and economic growth. He stated that this has created uncertainty regarding the direction of the American economy. Additionally, the NASDAQ Index confirmed its official entry into a bear market.
