20 lakh crores of investors drowned. Sensex breaks 3900 mark,
Stock Market Crash, 20 lakh crores of investors drowned.
Indian stock markets crashed on Monday, 7 April. Sensex fell by 3900 points or about 5 percent in early trade. Nifty plunged by about 100 points to reach the level of 21,750. This fall created panic among investors. In just a few minutes, the total market value of companies listed on BSE fell by more than Rs 10 lakh crore.
Indian stock market Monday 7The markets crashed on April 15. The Sensex fell 3900 points or about 5% in early trade. Nifty plunged by about 100 points to reach 21,750. This is the lowest level of Nifty in the last 10 months. This fall created panic among investors.
In just a few minutes, the total market value of the companies listed on BSE fell by more than Rs 20 lakh crore. The India VIX index, which indicates panic in the stock market, jumped 55%. The Nifty IT index fell by 7% and the pharma index by 6%. All sectoral indices were in the red. SE Smallcap and Midcap crashed by up to 10%.
Stock Market Crash: These 5 reasons caused panic in the stock market,
1. Trend of exit from the market by investors around the world. Almost all the major stock markets of the world were under heavy pressure today. The aggressive tariff policy of the Donald Trump government has shaken the confidence of investors in the stock markets around the world. According to Reuters, Trump on Sunday described the tariff as “bitter medicine” and said that “sometimes you have to take bitter medicine to fix something.” He also made it clear that he is not worried about the fall in the stock markets.
In Asian stock markets, Taiwan Weighted Index fell by 10%. Stock markets of China and Hong Kong also crashed. Japan’s Nikkei saw a decline of 7%. Earlier on Friday, the S&P 500 index in the US markets fell by 5.97%, Dow Jones by 5.50% and Nasdaq by 5.73%. This sell-off in global markets also had a direct impact on the morale of Indian investors.
2. Impact of taxes imposed by Trump government. The Trump administration has imposed strict tariffs on more than 180 countries, which has increased uncertainty and fear in stock markets around the world. Experts say that the stock markets have not yet fully assessed the impact of the tariffs. Brokerage firm Emkay Global said that its direct impact on India may be less, but the threat of recession in the US could have a negative impact of up to 3% on Nifty’s EPS (Earnings Per Share) in FY26. This could cause the Nifty level to fall to 21,500.
3. Fear of economic recession. Trump’s tariff policy is expected to increase inflation, reduce corporate profits and weaken consumer sentiment. Experts believe that this can also have a serious impact on the growth of the global economy.
JP Morgan has increased the risk of recession at the US and global level from 40% to 60%. According to them, if this policy of America continues for a long time, then global recession can be considered almost certain. Its direct impact on India may be limited, but it cannot remain completely untouched by the impact of the global recession.
4. FPI selling starts again. Foreign portfolio investors (FPIs) bought Indian stocks in March, but have started selling again in April. So far this month, FPIs have sold shares worth Rs 13,730 crore. Due to Trump’s policy and global uncertainty, there is a fear that if a better agreement is not reached between India and America regarding trade, then the exodus of foreign investors may increase further.
5. RBI meeting and quarterly results. Some degree of caution is also being seen in the market as the RBI’s Monetary Policy Committee (MPC) meeting is scheduled to be held on April 9. Investors are hoping that the RBI may cut interest rates in view of rising global risks.
Also, the Q4 results season is starting from this week.Get AppTCS will present its March quarter results on 10 April. This time not just the results but also the management’s comments will be very important because all companies are now assessing the impact of Trump’s policy and the global trade war. This will play an important role in showing investors the way forward.
Stock Market Crash. Why did Tata Motors share fall?
After the US’ decision to impose a 25% tariff on imported cars, the Tata Group company announced to stop exporting JLR to the US. Tata decided to stop the export of JLR, which makes luxury cars like Jaguar, Range Rover and Defender. The effect of this decision of the company is being seen on its shares today. Let us tell you that Tata’s JLR has suffered a major setback due to the tariff imposed on cars by Trump.
JLR fears that if they export cars to the US, they will be taxed heavily. This means that cars will become expensive and their sales will fall further. The effect of this fear was seen on Tata’s shares today.
Today’s Top Losers Stocks.
Tata Steel, Tata Motors, Infosys, Tech Mahindra, L&T, HCL Tech, TCS, Reliance Industries, NTPC, Axis Bank, M&M, Kotak Mahindra Bank, IndusInd Bank and M&M are the top losers. Selling was seen in most Asian markets along with India. Tokyo, Shanghai, Bangkok, Seoul and Hong Kong have recorded a decline of up to 11 percent.
Due to reciprocal tariffs, heavy selling was seen in the US markets on Friday. The Dow closed down by 5.50 percent and the technology index Nasdaq by about 5.82 percent. Oil prices have fallen sharply amid global uncertainties.