Stock market crash today: The Indian stock market suffered massive losses in trade on Monday, April 7, mirroring the trends seen in major global markets amid mounting fears over the impact of a global trade war triggered by US President Donald Trump’s reciprocal tariffs.
The Sensex crashed as much as 4,000 points, while the Nifty 50 dropped below 21,800 in early deals.
The BSE Midcap and Smallcap indices plunged up to 10 per cent.
Why is the Indian stock market falling today?
Here are the five key factors that appear to be behind the bloodbath in the Indian stock market:
1. Global selloff
Almost every major market across the world is down with deep cuts as Trump administration showed no sign of backing away from their tariff plans.
According to a Reuters report, Trump on Sunday termed tariffs as “medicine” and said foreign governments would have to pay significantly to lift tariffs.
He said he was not concerned about losses in global stock markets.
“I don’t want anything to go down. But sometimes you have to take medicine to fix something,” Reuters quoted Trump saying so.
There is bloodbath across markets in Asia, Europe and the US. In Asia, Taiwan Weighted crashed 10 per cent during trade on Monday, while Nikkei cracked 7 per cent.
On Friday, the S&P 500 crashed 5.97 per cent and Dow Jones ended with a loss of 5.50 per cent. Tech-heavy Nasdaq plunged 5.73 per cent.
Weakness in the global stock market weighs heavily on domestic stock market sentiment.
2. Tariff impact still not priced in
The Trump administration has adopted a rigid stance on the sweeping tariffs imposed on more than 180 countries. This has added to market nervousness, dashing hopes of a favourable outcome from swift negotiations.
In the context of Indian markets, experts believe there could be further downside in the first quarter of the current financial year.
“We see further downside for Indian equities in Q1YF26, notwithstanding the complacent response to the reciprocal tariffs by the US,” said brokerage firm Emkay Global.
“The direct impact on India may be muted, but the resulting US recession poses a nearly 3 per cent risk to FY26 Nifty EPS (earnings per share), and the consequent derating could push the Nifty down to 21,500,” Emkay said.
3. Fears of growth slowdown
Experts believe Trump’s tariffs will drive up inflation, shrink corporate profitability, hit consumer sentiment and weigh on economic growth.
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