In a dramatic turn of events that shocked global markets, the Indian stock market witnessed its biggest single-day fall in years. On what’s now being dubbed “Black Monday 2025,” the BSE Sensex crashed by over 4,000 points while the Nifty 50 nosedived below 21,800, triggering panic selling across all sectors.
🌍 What Triggered the Crash?
The meltdown comes on the heels of escalating global trade tensions. In a bold move, the United States imposed fresh tariffs impacting over 180 countries, including key economic partners. In retaliation, China slapped a 34% tariff on U.S. goods, raising alarms about a looming global trade war.
This tit-for-tat tariff battle is shaking investor confidence worldwide, with experts warning of a potential recession in the United States, which could ripple across global markets.
📉 Key Numbers at a Glance:
Sensex opened at 71,449, down nearly 4,000 points from Friday’s close of 75,364
Nifty 50 opened at 21,758, crashing over 1,000 points from 22,904
Market cap erosion: Investors lost ₹18 lakh crore within 10 minutes of market open
India VIX surged 52%, signaling extreme market volatility
💹 Global Domino Effect
Asian markets tumbled in sync:
Japan’s Nikkei 225: -8%
Hong Kong’s Hang Seng: -9.4%
South Korea’s Kospi: -4.3%
Australia’s ASX 200: -6%
Dow Jones futures fell 979 points, while Nasdaq futures dipped nearly 4%, underscoring deepening global uncertainty.
🛢️ Oil Drops, But No Panic Yet from U.S.
Meanwhile, WTI crude slipped below $60 per barrel — a 3% fall and the lowest since April 2021. Surprisingly, economic advisors in the Trump administration downplayed concerns of inflation or recession, asserting that the tariffs were “corrective medicine” for the global trade imbalance.
🏦 RBI’s Response Awaited
The RBI’s Monetary Policy Committee met today in its first review of FY2025. While analysts anticipate a 25-basis-point repo rate cut, investors are eagerly watching for liquidity measures that could calm markets.
📊 Top Sectors Hit
IT stocks plunged due to fears of reduced U.S. demand
Metal stocks fell sharply amid global slowdown fears
Banking and Financial Services were hammered by investor outflows
📌 What This Means for You:
If you’re an investor:
Avoid panic selling
Rebalance your portfolio with long-term fundamentals in mind
Watch for RBI’s moves and global trade developments
