Indian markets suffered a significant decline on Monday as concerns over a global trade war intensified following US President Donald Trump’s announcement of tariffs on all nations. The Sensex and Nifty decline followed a market sell-off on Wall Street and other significant Asian markets such as Japan, Singapore, and China.
Both benchmark indices – Sensex and Nifty – declined by roughly 3 percent. Sensex plummeted 2226.79 points to 73,137.90 on Monday, as Nifty dropped 742.85 points to 22,161.60.
Some of the most affected stocks were those of IT firms that generate considerable income from the US. Tata Steel fell by over 9 percent, while Tata Motors declined by more than 8 percent. Other major underperformers included Larsen & Toubro, HCL Technologies, Kotak Mahindra Bank, Infosys, ICICI Bank, Axis Bank, Reliance Industries, and Adani Ports.
Markets worldwide have been plummeting since Donald Trump declared tariffs on all trading partners of the US. The declaration has sparked concerns about a worldwide trade conflict, as nations such as China, Canada, and Mexico are already preparing counteractions.
Investors were betting that the looming risk of recession would surpass the expected upward pressure on inflation due to tariffs.
“Both China and Japan index declined by 10 per cent and 8 per cent, respectively. This escalates the stakes in the ongoing trade war and raises concerns about a potential global recession that could affect everyone. On Friday, the US S&P 500 dropped by 6 per cent, and the Dow Jones fell more than 2,000 points, marking its worst week since the COVID-19 crisis. This came after China announced it would impose reciprocal 34 per cent tariffs on all US imports starting April 10,” Vikas Jain, Head of Research at Reliance Securities, told news agency
