Indian Stock Markets Crash as Trump’s Tariffs Spark Global Sell-Off

Indian stock markets opened sharply lower on Thursday, reeling under selling pressure triggered by U.S. President Donald Trump’s surprise tariff announcement. Investors reacted with panic, leading to a steep decline in key indices amid a broader global market sell-off.

The BSE Sensex tumbled over 800 points at the opening bell, starting the day at 75,811.12, a 1.05% drop. The NSE Nifty 50 followed suit, falling 182.05 points to open at 23,150.30, down 0.78%. Market analysts attributed the decline to heightened uncertainty surrounding U.S. trade policies and their impact on global trade flows.

Banking and market expert Ajay Bagga explained the ripple effect on Indian markets, stating, “The impact on India will be felt through a stronger U.S. dollar, potential export losses, and tightening global portfolio flows. Investors are fleeing to safe-haven assets like gold, the Japanese yen, Swiss franc, and government bonds. The uncertainty has now transformed into the certainty of economic and market pain.”

The sell-off was widespread across key sectors, with Nifty Auto sliding 1.25%, Nifty IT down 1.67%, and Nifty Metals slipping 0.81%. However, amid the turbulence, the pharma sector bucked the trend, surging 2.95% as it remained unaffected by Trump’s tariff move.

Technical analysts predict more volatility ahead. Akshay Chinchalkar, Head of Research at Axis Securities, noted, “Asian markets are deep in the red due to Trump’s announcement, and Nifty is expected to remain under pressure. The critical support levels to watch are 23,090-23,141, followed by the 22,800-23,000 zone. Today’s closing will offer a key insight into whether bulls or bears have the upper hand.”

The panic was not limited to India; global markets reflected similar turmoil. Japan’s Nikkei 225 plunged 3%, Hong Kong’s Hang Seng index fell 1.45%, and South Korea’s Kospi dropped over 1%. The ripple effect extended to the U.S. futures market, with Dow Jones Futures sliding 1.94%, signaling a potentially weak opening for Wall Street.

Market watchers remain on edge as they assess the broader implications of Trump’s trade policy shifts. With currency tensions rising, experts warn that if China retaliates by devaluing its currency, market volatility could intensify further.

Also Read: India Stock Market Continues To Dwindle: Nifty Down, IT Index Falls 4%