The Indian stock market witnessed its second major crash of the year on Monday, April 7. The Sensex tumbled by 3,200 points, or 4.20%, to trade around 72,150, while the Nifty dropped by 1,000 points or 4.50%, slipping below the 22,000 mark. This marks the biggest fall since June 4, 2024, when the market declined by 5.74%.
All 30 stocks in the Sensex are trading in the red. Tata Steel, Tata Motors, and Infosys have plummeted by nearly 10%, while Tech Mahindra, HCL Tech, and L&T are down by over 8%.
Sectoral Bloodbath
Among the NSE sectoral indices, Nifty Metal took the biggest hit, falling 8%. The IT, Oil & Gas, and Healthcare sectors declined by around 7%, while Auto, Realty, and Media were down by approximately 5%.
Global Sell-Off & Crude Oil Slump
Crude oil prices have also taken a hit, falling 12.11% since April 2. Brent crude is down 4% today, slipping below $64 per barrel, marking its lowest level in the past four years.
Three Major Reasons Behind the Market Crash
- Trump’s Global Tariff Move
The U.S. has announced sweeping tariffs, including a 26% tariff on Indian imports. Other countries facing tariffs include China (34%), the EU (20%), South Korea (25%), Japan (24%), Vietnam (46%), and Taiwan (32%). - China’s Retaliatory Tariff
In response, China has imposed a 34% retaliatory tariff on U.S. imports, effective from April 10. This escalation follows President Trump’s April 3 announcement of tit-for-tat tariffs targeting multiple global trading partners. - Fears of Global Economic Slowdown
The surge in tariffs is expected to raise prices and reduce consumer demand, leading to concerns about a slowdown in global economic activity. The declining demand is also reflected in plummeting crude oil prices, triggering panic among investors.
Midcap and Smallcap Indices Also Plunge
The BSE Midcap Index fell 1,850 points (4.60%) to 38,630, while the Smallcap Index declined 2,860 points (6.20%) to 42,999.82.
Investors Lose ₹20 Lakh Crore in Market Value
The sharp sell-off wiped out nearly ₹20 lakh crore of investor wealth. On April 4 (Friday), the total market capitalization of BSE-listed companies was ₹404 lakh crore, which dropped to ₹383 lakh crore by 10 AM on April 7.
Asian and U.S. Markets Join the Meltdown
Asian markets witnessed a synchronized decline:
- Hong Kong’s Hang Seng: down 10%
- China’s Shanghai Index: down 6.50%
- Japan’s Nikkei: down 6%
- Korea’s Kospi Index: down 4.50%
The Nifty traded on the NSE International Exchange dropped by 800 points (3.60%), now at 22,180.
U.S. markets closed sharply lower on April 3:
- Dow Jones: down 3.98% to 40,545
- S&P 500: down 4.84%
- Nasdaq Composite: down 5.97%
Jim Cramer Predicts ‘Black Monday’-Style Crash
CNBC’s Mad Money host Jim Cramer warned of a potential repeat of 1987’s Black Monday, predicting a 22% single-day drop if global tensions escalate further.
“If President Trump doesn’t offer relief to rule-abiding nations, we could be looking at a 1987-style meltdown—three days of decline followed by a dramatic crash on Monday,” Cramer said.
Recent Market Movement Recap
On April 4, the Sensex had already fallen by 930 points (1.22%), closing at 75,364, while the Nifty dropped 345 points (1.49%) to end at 22,904.
Among NSE sectors, Metal lost 6.56%, and Pharma, Realty, IT, Auto, and Media sectors dropped by 3–4%.