Indian markets witness steep sell-off as global fears of trade war and recession mount following Trump’s reciprocal tariff push
New Delhi, April 7: Indian equity markets opened the week deep in the red, following a global rout triggered by former US President Donald Trump’s announcement of sweeping reciprocal tariffs. The Sensex plunged more than 2,200 points, closing 3% lower at 73,137.90, while the Nifty slipped 3% to end at 22,161.60.
The market panic mirrored a worldwide slump, with fears of a full-blown trade war and impending global recession gripping investors. Trump’s new trade policy, which proposes mirroring tariffs imposed by other nations — including India — has sent shockwaves through financial markets.
“The carnage in global markets over high US tariffs and retaliation from other countries has created serious concerns of a potential trade war,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Sectors like IT and metals were the worst hit due to fears of high inflation and slow growth, particularly in the US.”
While the domestic economic fundamentals remain relatively strong, Nair cautioned that investors should tread carefully in the coming weeks.
“India may see limited direct impact compared to others, but volatility will persist. Focus should remain on domestic-driven sectors, which are likely to rebound faster once the global dust settles.”
The sharp dip also came on the heels of a 2,100-point drop in the Sensex last week, compounding investor concerns.
Since taking office for a second term, Trump has doubled down on his “tariff reciprocity” narrative, vowing to match import tariffs imposed by other countries in a bid to protect American economic interests.
With sentiment fragile, the attention of market participants will now shift to the Reserve Bank of India’s upcoming monetary policy meeting and the start of the corporate earnings season, which will be key in determining the next market trajectory.
Investors are advised to remain cautious, avoid aggressive bets, and watch global cues closely in the days ahead.