Massive fall in Indian stock market
The Indian stock market saw a major fall on Monday 7th-April-2025 causing concern among investors and market watchers.
Following a similar pattern seen in global markets that Both major stock indexes Sensex and Nifty-50 dropped sharply.
This decline was largely influenced by the rising tension around trade tariffs introduced by the United States.
Also Read: Reciprocal Tariff; आसान नहीं डगर टैरिफ की, क्या भारतीय रोज़गार और व्यापार में बदलाव होने वाले हैं ?
Massive fall in Indian stock market | Big Drop
(i). The Sensex which tracks 30 major companies listed on the Bombay Stock Exchange or BSE fell by 2226.79 points. This is a drop of 2.94% and the index closed at 73,137.90.
(ii). The Nifty 50 another key index got slipped by 742.85 points or 3.24% ending the day at 22,161.60.
Today Around 1 PM the market hit its lowest level of the day. Sensex was down by 3,266.50 points and touching 72,098.19 while Nifty fell 1,054.35 points to reach 21,850.
As checked, this was the biggest single day fall for the Sensex in the past 10 months.
Massive fall in Indian stock market| Investors Faced Huge Losses
During the early hours of trading investor wealth dropped by a massive Rs. 20.16 lakh crore. This happened as the Sensex fell sharply by 3,939.68 points means 5.22% and reaching 71,425.01 before slightly recovering.
At the end of the trading session nearly all stocks on the Sensex closed in the red. Only Hindustan Unilever managed to stay in the green.
Today major companies that lost value
(i). Tata Steel falling by 7.33% (Dropped the most)
(ii). Larsen & Toubro falling by 5.78%.
(iii). Other companies like Tata Motors, Kotak Mahindra Bank, Mahindra & Mahindra, Infosys, Axis Bank, ICICI Bank, HCL Technologies and HDFC Bank also saw heavy losses.
These companies play a large part of the Indian stock market so their poor performance had a significant impact on overall market movement.
Also Read: AI for Emerging Technologies; Rising Industries and Creating Multiple Job Opportunities
Massive fall in Indian stock market | Reasons behind
Head of Research at Geojit Financial Services Mr Vinod Nair explained the reason for the steep fall.
According to him – global fears of a trade war were imposed by high tariffs from the United States and retaliatory measures by other countries. This uncertainty affected investor confidence worldwide.
Mr. Nair explained further that while India might not be directly impacted as much as other countries but the fear of a global economic slowdown is enough to make markets nervous. In such times, careful and strategic trading becomes essential.
Massive fall in Indian stock market | Impact on different sectors
Every sector on the BSE experienced losses. Here is how much some key sectors fell:
(i). Metal sector: down by 6.22%
(ii). Real Estate: down by 5.69%
(iii). Commodities: down by 4.68%
(iv). Industrials: down by 4.57%
(v). Consumer Discretionary: down by 3.79%
(vi). Automobile sector: down by 3.77%
(vii). Banking (Bankex): down by 3.37%
(viii). Information Technology (IT): down by 2.92%
(ix). Technology (Teck): down by 2.85%
(x). BSE Focused IT Index: down by 2.63%
Smaller companies also suffered. The BSE small cap index down by 4.13% and the mid-cap index also went down 3.46%.
Global Markets also experienced losses
It was not just India feeling the pressure. Global stock markets also saw major loses:
(i). Hong Kong’s Hang Seng index down by more than 13%
(ii). Japan’s Nikkei 225 down by nearly 8%
(iii). China’s Shanghai Composite down by over 7%
(iv). South Korea’s Kospi down by more than 5%
European markets were also deep in red and showing losses of up to 6%.
On Friday the U.S. markets had already shown signs of weakness-
(i). S&P 500 down by 5.97%
(ii). Nasdaq Composite down by 5.82%
(iii). Dow Jones Industrial Average down by 5.50%
Possible global economic slowdown
The sharp fall in domestic and international stock markets reflects growing fears about a global economic slowdown. The idea of a trade war and high inflation has created uncertainty in the IT and metal industries as these are heavily dependent on exports.
Even though the Indian economy is safer than most but global events can still impact market behaviour. Therefore trading cautiously, good risk management and long term planning are important key aspects in such uncertainty or uncertain times.
Slowdown effect – Black Monday or Market Crash
