Stock market crash today: It's a bloodbath! Investors lose Rs 14 lakh crore as BSE Sensex ends 2,227 points down - top 5 reasons markets for fall

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Stock market crash today: It’s bloodbath on Monday! BSE Sensex and Nifty50, the Indian equity benchmark indices, crashed in trade on Monday. Both stock market indices plunged over 4%. Why is the stock market falling? We take a look at key reasons:

Stock market crash today: It’s bloodbath on Monday! BSE Sensex and Nifty50, the Indian equity benchmark indices, crashed in trade on Monday. Both stock market indices plunged 5% intraday before recovering partially. BSE Sensex ended the day at 73,137.90, down 2,227 points or 2.95%. Nifty50 ended at 22,161.60, down 743 points or 3.24%.

This is the largest single-day decline in 10 months. The sharp decline followed global market turmoil triggered by US President Donald Trump’s tariff increases and China’s retaliatory measures, sparking concerns about economic slowdown. Investors on Dalal Street experienced significant losses on Monday, with their wealth diminishing by Rs 14 lakh crore due to a substantial drop in benchmark indices.

The market value of companies listed on the BSE saw a considerable reduction of Rs 14,09,225.71 crore, settling at Rs 3,89,25,660.75 crore (USD 4.54 trillion) within a single trading session.

Amongst Sensex constituents, only Hindustan Unilever avoided losses. Tata Steel registered the steepest decline of 7.33 per cent, whilst Larsen & Toubro decreased by 5.78 per cent.

Significant losses were also recorded by Tata Motors, Kotak Mahindra Bank, Mahindra & Mahindra, Infosys, Axis Bank, ICICI Bank, HCL Technologies and HDFC Bank. Hindustan Unilever showed a slight increase.

Vinod Nair, Head of Research, Geojit Investments Limited said, “The market tumbled as the carnage over high US tariffs and the retaliation by other countries may kickstart a trade war. Sectors like IT and metals have underperformed relative to the broader market due to the risk of high inflation with slower growth that may result in a potential recession in the US. Though the overall impact on India may be limited when compared with other countries, investors are advised to play cautiously during this fray. Focus will be on pure-play domestic themes, where the rebound is likely to be fair when the dust settles.”

On Monday, small-cap indices declined 4.13 per cent, whilst mid-cap indices decreased 3.46 per cent.

BSE sectoral indices showed substantial losses: Metal (6.22 per cent), realty (5.69 per cent), commodities (4.68 per cent), industrials (4.57 per cent), consumer discretionary (3.79 per cent), auto (3.77 per cent), bankex (3.37 per cent), IT (2.92 per cent), tech (2.85 per cent) and BSE Focused IT (2.63 per cent).

The week ahead has crucial domestic and global events, with international investors monitoring trade-related developments closely. On the domestic front, the MPC meeting conclusion on April 9 will be pivotal, followed by important economic indicators—IIP and CPI data—scheduled for April 11. The quarterly earnings season commences with TCS presenting its results on April 10.

1. US market Nasdaq Now In Bear Territory

The Nasdaq index moved into bear market territory on Friday, declining over 20% from its latest high point. This followed the extensive tariff announcement by U.S. President Donald Trump, raising concerns about worldwide economic deceleration. The comprehensive nature of these tariffs caught market participants off guard, leading to substantial declines across international financial markets.

The Federal Reserve Chairman Jerome Powell noted that the tariffs exceeded anticipated levels and cautioned about their potential effects on inflation and economic expansion, contributing to the unclear prospects for the U.S. economy.

2. Global market crash

The Indian stock markets reflected the broader international decline, with significant drops across Asian exchanges. Asian markets experienced substantial declines, with Hong Kong’s Hang Seng index dropping over 13 per cent, Tokyo’s Nikkei 225 declining nearly 8 per cent, Shanghai SSE Composite index falling over 7 per cent, and South Korea’s Kospi decreasing more than 5 per cent.

European markets experienced significant selling pressure, declining by up to 6 per cent.

Concurrently, American futures showed continued weakness, with Nasdaq futures declining 4% and S&P 500 futures showing a 3.1% reduction. The European futures markets also displayed significant negative movement.

3. US Recession Fears

Investors are increasingly worried about an economic downturn rather than immediate inflation challenges. The upcoming U.S. consumer price index (CPI) report is projected to show a 0.3% rise for March. However, experts anticipate that impending tariffs will lead to substantial cost increases across various industries, affecting everything from food items to vehicles.

As the earnings season commences, businesses are likely to face pressure on their profit margins due to higher operational expenses. Approximately 87% of U.S. firms will disclose their financial results between April 11 and May 9, with financial institutions leading the announcements.

4. Global Commodity Prices Plunge

The worldwide commodities market experienced substantial losses due to concerns about reduced demand and potential economic contraction.

The price of Brent crude decreased by 6.5%, while WTI saw a 7.4% reduction. Precious metals weren’t spared, with gold declining 2.4% and silver dropping 7.3%. Industrial metals also experienced significant reductions, as copper fell 6.5%, zinc decreased 2%, and aluminium declined 3.2%, reflecting investors’ unease about trade disputes and recession possibilities.

5. Safe Havens in Focus

Market participants shifted towards secure investments as concerns about a worldwide economic downturn intensified, creating additional pressure on stock markets. Strong demand for government securities pushed the 10-year U.S. Treasury yield down by 8 basis points to 3.916%. Trading in Fed funds futures increased, indicating expectations of an additional 25-basis-point reduction in rates by the U.S. Federal Reserve within the year.

The widespread move towards secure assets resulted in extensive selling across equity markets, as cautious sentiment spread throughout global trading venues. Although Fed Chair Jerome Powell indicated on Friday that the central bank remains patient regarding policy changes, market projections now suggest a 56% likelihood of a rate reduction by May.

6. Trade War Escalation

The global trade dispute intensified as China implemented retaliatory tariffs on various U.S. products, responding to comprehensive U.S. tariff increases earlier in the week. This ongoing exchange of trade restrictions has generated significant concerns regarding international trade and economic development.

Market analysts have expressed apprehension that sustained trade disagreements between the United States and China could affect manufacturing processes, reduce company profits, and further impact global demand, leading to substantial declines in worldwide equity markets.

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TOI Business Desk

The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.Read More

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