Amid escalating global trade tensions and massive selloffs across international markets, the Indian stock market faced a brutal Monday morning crash, triggering fears of a deeper financial contagion. Dubbed as “Black Monday”, April 7 witnessed a steep fall in benchmark indices as investors reacted to the ongoing US-China tariff war, foreign capital outflows, and declining global investor sentiment.
Market Meltdown: Sensex, Nifty Sink Over 4%
The BSE Sensex opened at 71,449.94—nearly 4,000 points down from Friday’s close of 75,364.69. By 9:20 am, the index had plummeted to 72,210.83, recording a sharp decline of 3,153.86 points (4.18%).
The Nifty 50 also mirrored the bloodbath, opening at 21,758.40, over 1,000 points down from the previous close of 22,904. At 9:24 am, it was trading at 21,908.30, a massive fall of 996.15 points (4.35%).
₹18 Lakh Crore Wealth Wiped Out in 10 Minutes
Investor wealth eroded at an alarming pace. The market capitalization of BSE-listed companies dropped to ₹3,86,01,961 crore from ₹4,04,09,600 crore on Friday—a staggering loss of ₹18,07,639 crore within the first 10 minutes of trade.
Backdrop: Global Markets in Panic Mode
The meltdown wasn’t isolated to India. Stock markets across Asia-Pacific nosedived, primarily triggered by tit-for-tat tariffs between the United States and China:
US Tariffs: The Biden administration extended trade tariffs to more than 180 countries.
China Retaliates: Beijing responded with a 34% tariff on US imports, escalating fears of a full-scale global trade war.
In response:
Japan’s Nikkei fell over 8%, while the Topix dropped 8.6%, prompting a circuit breaker.
South Korea’s Kospi dropped 4.3%; Kosdaq fell 3.4%.
Australia’s ASX 200 slipped 6%, officially entering correction territory.
Wall Street Sentiment Sinks
US futures also signaled red across the board:
Dow Jones Futures down 979 points (2.5%)
S&P 500 Futures fell 2.9%
Nasdaq 100 Futures dropped 3.9%
The Friday closing session on Wall Street saw its worst drop since the COVID-19 pandemic:
Dow Jones: Down 5.5%
S&P 500: Down 5.97%
Nasdaq: Down 5.8%, now 22% off its December peak, entering bear market territory
Crude Oil Dips Below $60, But White House Unshaken
US crude oil (WTI futures) slid over 3% to $59.74, its lowest since April 2021. Despite this, economic advisers in Washington remain unfazed. They maintain the tariffs are here to stay and downplay concerns about inflation or a looming recession.
RBI’s Monetary Policy Committee Begins Crucial Meeting
In India, the RBI’s six-member Monetary Policy Committee (MPC) began its first meeting of the financial year today. Amid the market chaos, there is speculation that the central bank may cut the repo rate by 25 basis points, though a deeper cut is unlikely.
The focus will also be on liquidity management to ensure effective rate transmission to borrowers and depositors. RBI has already held pre-policy discussions with major banks to align on liquidity framework expectations.
What Lies Ahead
With investor confidence shaken globally and geopolitical trade tensions rising, markets are expected to remain volatile. Analysts believe that unless diplomatic resolutions emerge quickly, the cascading effect may deepen across emerging markets like India.
