Indian benchmark indices witnessed a sharp sell-off on Monday, April 7, with both the Sensex and Nifty opening with a massive gap-down, tracking a global rout in equities triggered by mounting fears of a global trade war. The sharp fall came in the wake of concerns surrounding US President Donald Trump’s aggressive tariff policies that have unsettled investor sentiment across global markets.

At the opening bell, the BSE Sensex nosedived 3,379.19 points or 4.48 percent to 71,985.50, while the Nifty 50 plummeted 901.05 points or 3.93 percent to 22,003.40. The broader markets bore an even heavier brunt, with the Nifty Midcap index dropping 4 percent and the Nifty Smallcap index shedding 5 percent.

The freefall in Indian equities echoed the turmoil seen across global financial markets. On Sunday evening, Wall Street futures were down nearly 4 percent, sending shockwaves through Asia-Pacific markets. Benchmarks across the region saw declines ranging between 4 percent and 6 percent, with traders pricing in the risk of an intensifying standoff between the US and its major trading partners.

All stocks on the Nifty 50 index opened in the red, underlining the scale of the market-wide panic. Leading the slump were names like Trent, Tata Steel, JSW Steel, Tata Motors and ONGC. Sectorally, the carnage was led by metal stocks, with the Nifty Metal index plunging over 7 percent amid fears of reduced global demand and retaliatory tariffs. The Nifty IT index also dropped close to 7 percent as global recessionary concerns weighed on export-oriented companies.

Market experts noted that the sharp decline in Indian equities was part of a larger risk-off sentiment that has taken hold globally, as investors brace for the economic consequences of an escalating trade conflict. Traders are likely to stay cautious in the near term as developments on the global front continue to unfold.

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