GUWAHATI: BSE Sensex and Nifty50, the Indian equity benchmark indices, crashed in trade on Monday plunging the Indian equity markets to their 10-month low and wiping out investor wealth of over ₹20 lakh crore within seconds.
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Sensex opened nearly 4,000 points lower, sliding over 3.5% since its last trading session, while Nifty tanked over 1,000 points on Monday, April 7 morning. The crash follows a massive sell-off in Asian equities, panicked by US President Donald Trump's radical policies.
The top BSE Sensex losers were Tata Steel (-10%), Tata Motors (-7.86%), Infosys (-6.98%), Tech Mahindra (-6.36%) and L&T (-6.45%). All thirteen sectors experienced declines. Technology firms, with substantial revenue exposure to the United States, declined by 7%. The wider market segments comprising smaller and medium-sized enterprises registered falls of 6.2% and 4.6%, respectively. Key market indices declined significantly, with Nifty Metal recording an 8% decrease whilst Nifty IT saw a reduction exceeding 7%. Nifty Auto, Realty, and Oil & Gas sectors each witnessed declines surpassing 5%. The broader market impact was substantial, as small-cap and mid-cap indices registered falls of 10% and 7.3%, respectively. The combined market capitalisation of companies listed on the BSE saw a reduction of ₹19.4 lakh crore, bringing the total value to ₹ 383.95 lakh crore.
The tariffs - billed as the harbinger of a "golden period" for US industries - seek to undo trade practices that Trump believes have been unfair. The tariffs are country-specific and go as high as 50%. The rate announced for India is 26%, which has set off fears among exporters and traders, in addition to a 10% baseline duty applied to all nations.
A defiant Trump appeared unmoved by the bloodbath in global markets, equating his tariffs with a medicine that is required to "fix something" while speaking to reporters.
