The Indian stock market opened deep in the red on Thursday morning following a shock announcement by U.S. President Donald Trump, who imposed a 25% tariff on Indian exports. The unexpected trade action sent shockwaves through global markets, with the Sensex tumbling over 700 points and the Nifty dropping more than 200 points at the opening bell.
This tariff blow comes amid rising geopolitical tensions and adds fresh volatility to an already cautious investment landscape. Here’s a detailed look at the market crash, the top NSE gainers and losers, and what investors should brace for in the trading session ahead.
Sensex Crashes 786 Points, Nifty Slumps Over 200 Points in Early Trade
As the markets opened, the BSE Sensex nosedived 786.36 points or 0.97%, slipping to 80,695.50, while the Nifty 50 plunged 212.8 points or 0.85%, hitting 24,642.25. The broader indices also reflected the same bearish momentum, with significant losses seen in mid-cap and small-cap stocks as well.
The sudden downturn was directly attributed to Trump’s tariff announcement late last night, targeting a wide array of Indian manufactured goods, including pharmaceuticals, automotive parts, and textiles, for a steep 25% import duty.
Volatility Index Surges, Market Sentiment Turns Risk-Averse
The India VIX, a key measure of market volatility, spiked sharply by over 8%, signaling heightened fear and uncertainty among traders. Global investors started a broad sell-off, anticipating retaliatory measures from India and a cooling of diplomatic ties between the two nations.
Sectorally, export-driven and interest rate-sensitive stocks bore the brunt of the selloff, while defensive sectors like FMCG and Pharma showed relative resilience.
Top Nifty Losers: Export-Oriented Stocks Crushed
The heaviest losses were concentrated in export-heavy and global-reliant firms, many of which have strong business interests in the U.S.
Leading Nifty Losers:
Infosys (INFY): -4.67%
Tata Consultancy Services (TCS): -4.33%
Wipro (WIPRO): -4.12%
Bajaj Auto: -3.89%
Sun Pharma: -3.54%
HCL Technologies: -3.48%
Tech Mahindra: -3.37%
Hero MotoCorp: -3.11%
The IT and auto sectors are expected to remain under pressure in the coming sessions due to their high dependence on the U.S. market. Tariffs on auto components and IT services are expected to dent profit margins, leading to a downward revision in earnings forecasts for Q2.
Top Nifty Gainers: Defensive Plays and Domestic Stocks Hold Ground
Despite the bloodbath, a few stocks emerged as safe havens amid the chaos. Investors flocked to domestically focused and low-volatility sectors, driving gains in a few select counters.
Leading Nifty Gainers:
Hindustan Unilever (HUL): +2.14%
Nestle India: +1.87%
ITC Ltd: +1.65%
Britannia Industries: +1.48%
Power Grid Corporation: +1.33%
NTPC: +1.20%
Cipla: +0.89%
These stocks benefitted from a flight to safety, with investors reallocating funds away from risk-heavy sectors into consumer staples and utilities, which tend to perform well during market turmoil.
Rupee Weakens Against Dollar; Bond Yields Spike
The Indian rupee opened lower at ₹83.21 per dollar, reacting to the potential impact on India’s trade balance. Currency traders fear a widening current account deficit as exports to the U.S.—India’s largest trading partner—are expected to decline sharply.
Meanwhile, 10-year government bond yields rose to 7.29%, as the market began pricing in potential fiscal slippages and a weaker macroeconomic outlook.
Global Markets React to Trump’s Protectionist Move
The impact of Trump’s tariff wasn’t limited to India. Asian markets tumbled across the board. The Hang Seng fell 2.1%, the Nikkei 225 declined 1.8%, and the Shanghai Composite lost 1.5%. European and U.S. futures also indicated sharp declines ahead of their market openings.
The global investing community is now watching closely for India’s diplomatic response, which could escalate into a full-blown trade dispute, reminiscent of the earlier U.S.-China trade war.
Expert Commentary: Trade War Fears Fuel Market Panic
According to market experts, this sharp fall was not just a knee-jerk reaction but a signal of prolonged market unease.
“This is a classic case of geopolitical risk catching investors off-guard. A 25% tariff on India by the U.S. changes the earnings narrative for many Nifty companies, especially in IT, pharma, and auto,” said Ravi Menon, Head of Research at Axis Securities.
Fund managers are now advising a defensive portfolio reallocation and cautioning against any fresh exposure to high-beta stocks until further clarity emerges.
What to Watch in the Trading Session Ahead
1. Government’s Policy Response:
Markets will keenly watch for statements from the Finance Ministry or Commerce Ministry. Any hint of retaliatory tariffs or diplomatic countermeasures will further impact sentiment.
2. U.S. Market Opening:
The Wall Street reaction will play a crucial role in guiding the second half of India’s trading session, especially for foreign institutional investors (FIIs).
3. Sector Rotation:
We expect to see continued sector rotation into FMCG, power, and PSU stocks, while IT, auto, and pharma may remain under selling pressure.
4. FII & DII Activity:
Initial data showed that Foreign Institutional Investors (FIIs) have already started heavy net selling in equities, while Domestic Institutional Investors (DIIs) may offer some cushion to the crash by absorbing short-term panic.
Key Support & Resistance Levels for Nifty and Sensex
| Index | Support | Resistance |
|---|---|---|
| Nifty 50 | 24,480 | 24,800 |
| Sensex | 80,300 | 81,200 |
Technical analysts believe a break below these support zones could lead to further downside of 2–3%, especially if global cues remain negative.
Investor Advisory: Tread Cautiously, Avoid Panic Selling
We urge investors to avoid knee-jerk reactions. While the selloff is severe, sound investing principles such as long-term holding in quality blue-chip stocks and diversification will help weather the storm.
Consider booking profits only in overheated counters, and keep an eye on government and global developments for re-entry points.
Conclusion: A Stormy Start, But Strategic Opportunities Ahead
The Indian stock market has witnessed one of its sharpest opening crashes in recent times due to President Trump’s sudden tariff decision. With the Sensex and Nifty reeling, and export-heavy sectors bleeding, investor nerves are clearly on edge.
However, amid crisis lies opportunity. This correction may offer value-buying opportunities in quality large-cap names after the dust settles. For now, volatility will rule the market, and a wait-and-watch approach is strongly advised.
Stay tuned with us for live updates, expert commentary, and actionable insights throughout the day.
