The Indian stock market witnessed a sharp fall on Monday, 7 April, as the benchmark Sensex plunged by 2,227 points or nearly 3 per cent to close at 73,137.90. This marked the steepest single-day drop in the last ten months, triggered by global fears surrounding a potential trade war.
The Nifty 50 also faced heavy losses, falling 742.85 points to settle at 22,161.60, reflecting a 3.24 per cent drop.
The downturn was mainly driven by widespread selling across sectors, with investors reacting to the recent trade tensions caused by US President Donald Trump’s tariff policies.
Market analysts said that concerns over the broader impact of a global trade conflict have led to uncertainty and nervousness among investors. Despite India's limited direct exposure to global tariff changes, the spillover effects were strongly felt.
Midcap and smallcap indices were also not spared. The BSE Midcap index dropped by 3.46 per cent, while the Smallcap index declined by a sharper 4.13 per cent.
The overall market capitalisation of companies listed on the Bombay Stock Exchange declined significantly. From over ₹403 lakh crore in the previous session, it fell to ₹389 lakh crore, wiping out nearly ₹14 lakh crore of investor wealth in a single day.
Among major losers on the Nifty 50 were Trent, which fell by nearly 15 per cent, followed by JSW Steel and Tata Steel, both declining over 7 per cent. Out of the 50 stocks on the index, 47 ended in the red.
Only two stocks, Hindustan Unilever and Zomato, managed to close with marginal gains, while Apollo Hospitals remained flat.
Sector-wise, metal and real estate stocks were hit the hardest. The Nifty Metal index dropped by 6.75 per cent, while the Realty index lost 5.69 per cent. Other sectors such as media, auto, private banking, PSU banking, pharmaceuticals and IT also saw deep cuts, indicating that the sell-off was broad-based.
Heavy trading activity was noted in stocks such as Vodafone Idea, YES Bank and Tata Steel, which were the most active in terms of volume. In a sign of market distress, around 775 stocks touched their 52-week lows during the session, including prominent names like TCS, Infosys, Reliance Industries, Tata Motors, Titan and L&T.
Seven Nifty stocks fell by more than 5 per cent in a single day, reflecting the extent of the damage. Additionally, as many as 384 stocks hit their lower circuit limits on the NSE, showing the pressure across broader market segments.
The advance-decline ratio painted a grim picture. According to provisional data, nearly 2,640 stocks declined on the NSE, while only 327 managed to gain. Around 69 stocks remained unchanged.
Experts warned that if the Nifty fails to hold the 21,700 level in the coming sessions, further downside towards 21,300 cannot be ruled out. At the same time, any recovery may face resistance between the 22,500 and 22,800 levels.
Given the ongoing volatility, market participants are being advised to remain cautious, adopt hedged strategies and avoid aggressive trades until signs of stability emerge.
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