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The Indian stock market witnessed a brutal sell-off on Monday as intensifying trade tensions between the United States and China sent shockwaves through global financial markets.
The benchmark Sensex nosedived by almost 3,000 points, while the Nifty sank below the psychologically crucial 22,000 level, erasing lakhs of crores in investor wealth.
Around noon, the Sensex was trading at 72,385.4 — down 2,979 points or 3.95 per cent. Meanwhile, the Nifty slumped 976.1 points or 4.26 per cent to 21,928.3.
Also Read: Indian stock market crashes amid US reciprocal tariff fears
Trade War Sparks Panic Sell-Off
The key trigger behind Monday’s crash was the intensifying trade conflict between the world’s two largest economies.
After the US announced sweeping tariff hikes, China hit back with retaliatory duties on several American products.
Fear of Global Recession Looms
The tit-for-tat moves have raised fears of a prolonged trade war, which could derail global economic growth and disrupt manufacturing and supply chains.
Investors across the world are growing increasingly worried that the trade tensions will slow down global demand, raise costs for businesses, and eat into corporate profits.
The fear of a global recession has further spooked investors.
Asia Takes a Hit
The uncertainty has triggered heavy selling across equity markets, with Asia bearing the brunt of the panic.
Japan’s Nikkei tumbled 7 per cent, South Korea’s Kospi fell 5 per cent, and Hong Kong’s Hang Seng crashed over 10.5 per cent.
All Indian Sectors in the Red
The negative sentiment spilled into India, where all 13 sectoral indices on the BSE were trading in the red.
The Nifty Metal index plunged 8 per cent, while Nifty IT dropped more than 7 per cent amid worries over US exposure.
Auto, realty, and oil and gas sectors also saw declines of over 5 per cent each. The sell-off was more severe in the broader market, where mid-cap and small-cap indices lost 7.3 per cent and 10 per cent, respectively.
Also Read: Stock market crash makes investors poorer by Rs 20.16 lakh cr in morning trade
Top Losers
Top losers on the Sensex included Tata Steel, down nearly 10 per cent, followed by Tata Motors, Infosys, L&T, and Tech Mahindra, each falling between 6 per cent and 8 per cent.
