It was a rough day on Dalal Street today. The Indian stock market took a major beating, with both the Sensex and Nifty falling over 4%. Investors were caught off guard as global markets reacted sharply to new tariffs announced by US President Donald Trump. The result? A sea of red across the board.
Sensex and Nifty dropped around 5%, hitting their lowest levels in the past 9 months.
The Volatility Index (India VIX), which shows how nervous the market is, shot up by more than 50%.
Small-cap and mid-cap stocks got hit even harder – small caps were down around 5%.
IT and metal stocks were the worst performers. The Nifty IT index fell 6%, and the Nifty Metal index dropped 7%.
The total market value of all companies listed on the BSE fell by Rs 19.4 lakh crore in a single day.
This crash didn’t just happen in India. It started with a big sell-off in the US on Friday (April 4), which is now affecting markets all over the world.
The S&P 500 in the US had its worst day since March 2020, losing 6% in a single day.
Big tech companies like Tesla, Apple, and Nvidia saw huge losses — Tesla was down 10%, while Apple and Nvidia dropped over 7%.
Asian markets like Japan’s Nikkei and Topix also crashed by 7%, causing trading to stop temporarily.
Even oil prices fell below $60 per barrel, and gold saw a drop of 3%.
This all started with President Trump announcing new tariffs on imports. He called it “Liberation Day” and said it would give the US more power in global trade talks. But instead of boosting confidence, it triggered a panic.
China immediately hit back by slapping a massive 34% tariff on all US products. That’s when things started to unravel.
While China is going all-in with retaliation, India is taking a softer approach. Reports suggest that India, along with countries like Japan and South Korea, is trying to negotiate and ask for concessions from the US rather than retaliate with their own tariffs.
This calm response might help reduce tension, but uncertainty in global trade is keeping Indian investors on edge.
These kinds of sharp corrections are scary, but they’re also not new. Here’s what you can do:
Don’t panic. Avoid selling in fear.
Stick to strong, fundamentally sound companies.
If you’re a long-term investor, use the dip to buy good stocks at lower prices.
Stay updated, but don’t get swayed by every headline.
This crash is big, no doubt. But it’s driven largely by global news and fear, not just problems in India. If you’re a long-term investor, stay focused on your goals. The market may stay volatile for a while, but it always recovers with time.
We’ll keep bringing you updates as the story develops.
