Mumbai: Indian shares suffered a brutal sell-off on Monday, dragged down by fears of a global trade war and rising concerns about a U.S. recession. The BSE Sensex plunged 5.22%, losing 3,939 points to close at 71,425. Investors watched in shock as ₹20.16 lakh crore vanished from the market in a single session.
Asia Follows Wall Street’s Collapse
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The crash came after Wall Street’s sharp drop on Friday, triggered by Donald Trump’s new tariffs and China’s strong response. Asian markets fell sharply, and U.S. stock futures pointed to more pain ahead. The S&P 500 futures dropped 2.5%, while Nasdaq futures fell over 3%.
On April 2, Trump implemented a 10% baseline tariff on imports from all trading partners. However, countries maintaining trade surpluses with the U.S. face substantially higher rates - China bears the heaviest burden at 34%, followed by the European Union (20%), South Korea (25%), Japan (24%), and Taiwan (32%).
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These punitive measures compound existing trade restrictions, notably the comprehensive 20% duty on all Chinese imports instituted earlier this year. The escalating tariff regime signals a hardening of America's protectionist stance in global commerce.
Analysts warn that Indian exporters—especially in IT, pharma, and autos—could suffer if global trade slows. With no quick fix in sight, markets may remain volatile in the coming weeks.
