The recent tariffs imposed by US President Donald Trump have caused major financial instability, clearing out trillions of dollars in global market value and sending Indian stock indices to their lowest level in 10 months.
The Nifty fell by more than 1,000 points, and the Sensex fell about 3,200 points, more than 3.5% from its previous trading session. Following a big sell-off in Asian markets due to concerns about Trump’s hardline trade policy, this steep slide comes after US futures pointed to significant losses when trading starts later today.
With rates as high as 50%, the tariffs are intended to target certain nations in an effort to rectify trade imbalances that President Trump believes are not justified. The 26% tax on India has caused exporters and businessmen to get concerned. In a news conference earlier today, President Trump stated that his tariffs are intended to “fix something” and compared them to essential economic medicine, despite the market turbulence.
Significant Losses in the Indian Stock Market
The Sensex fell 3,200 points to 71,425.01 in early trading, and the Nifty fell 1,160.8 points to 21,743.65. By 10 AM, the Nifty was just above 22,000 and the Sensex had dropped more than 3,200 points. Within a few minutes, the market crisis destroyed investor money totalling about Rs. 19 lakh Crores. The value of the Indian rupee declined as well, dropping 30 paise to 85.74 versus the US dollar.
The tariffs were expected to have a severe negative impact on Indian markets, according to analysts, who also contend that India now needs substantial financial reforms to protect its economy from the wider effects of this global trade battle. “India’s market is suffering not because of internal factors, but due to its interconnectedness with global markets. To safeguard the domestic economy, India will need a comprehensive fiscal, monetary, and reform strategy to weather the impending economic challenges,” said market expert Ajay Bagga.
Analyst Sunil Gurjar, who is registered with SEBI, added that the Nifty50 had already breached its first support level and was getting close to the second, and that additional losses were likely to increase if the negative trend continues.
Chaos in the Global Market
With large sell-offs in China, Japan, Taiwan, and Hong Kong, Asian markets were the most severely affected. Hong Kong’s Hang Seng index dropped by more than 10%, and stocks in China fell more than 4% after the government levied 34% retaliatory tariffs on US products. After a presumptuous day, Japan’s Nikkei index fell by more than 6.5%. Singapore’s stock market fell by more than 8%, while Taiwan’s index fell by about 10%.
Trump’s tariff plans have not only caused stock market collapses but also raised fears of a global recession. SPI Asset Management’s Stephen Innes issued a warning of a probable global economic downturn. “The market is spiraling downward, and Trump’s stance seems to be presumptous treating tariffs as a win rather than a negotiating tool,” Innes said, showcasing fears that the situation might go out of control.
