A massive financial jolt hit Indian stock markets on Monday as the aftershocks of US President Donald Trump’s tariff announcement rattled global markets. In an unprecedented crash, the Sensex nosedived by 3,939.68 points — a 5.22% fall — within seconds of opening, wiping out over ₹20 lakh crore in investor wealth.
The total market capitalization of BSE-listed companies plummeted from ₹4,03,34,886.46 crore to ₹3,83,18,592.93 crore, marking a steep loss of ₹20,16,293.53 crore. The BSE Midcap and Smallcap indices also suffered heavy losses, each dropping by 10%.
According to financial analysts, the shockwaves stem from fears that Trump’s renewed tariff stance will trigger a prolonged global economic slowdown. Inflationary pressures, declining corporate earnings, and weakening consumer sentiment are being viewed as key triggers.
Leading global firm JP Morgan has now pegged the probability of a global recession at 60%, intensifying panic among investors. Trump's firm statement ruling out any rollback of tariffs has further spooked the markets.
Adding to the volatility, Foreign Portfolio Investors (FPIs) have already pulled out ₹13,730 crore from Indian equities this month, amid uncertainty over monetary policy. With the RBI scheduled to announce its policy review on the 9th, traders remained in a selling mode, further deepening the market decline.
The financial tremors are a stark reminder of the ripple effect global policy changes can have on domestic markets. With uncertainty still looming, investors and regulators alike are bracing for more turbulence in the days ahead.
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