Mumbai, Apr 7 (UNI) Opening after a gap of two days, India’s stock market on Monday witnessed a massive crash as the benchmark indices continue to reel under the disastrous impact of US President Donald Trump’s ‘reciprocal tariffs’ announced on April 2.
The BSE Sensex dived by over 2226 points or 2.9 percent while the NIFTY saw a steep drop of over 742 points or 3.24 percent, resulting in the erosion of about Rs 12 lakh crore investors’ wealth on a single.
This is the worst fall of the indices in the last 10 months and came amidst the increasing negative sentiment regarding the stock markets because of Trump’s decision to impose 26 percent tariffs on Indian imports announced on April 2, which will come into effect from April 9.
Trump has also announced 25 percent tariffs on automobiles imported by the US.
Such landmark announcements by Trump have shaken not only India but the entire world, with share markets of all major economies witnessing steep fall. These include NIKKEI of Japan down by 7.83 per cent, Hang Seng by 13.22 per cent and similar was situation in other global market as well.
The Foreign Institutional Investors (FIIs) continued to sell in the cash segment as they sold equities worth Rs 3,484 crore and the Domestic Institutional Investors (DIIs) too sold equities to the tune of Rs 1,720 crore in the last trading session on Friday.
Commenting on the massive fall in the stock market today, Manish Jain, Chief Strategy Officer & Director, Mirae Asset Capital Markets said “Uncertainty is the key word here. Don’t assume that you know…if we don’t know we don’t know... So we don’t know what comes next and in which area from the US administration (as of now). Currently we are living in an uncertain world, hence traditional technical and fundamental parameters may not be the right model to look at current times unless the word uncertainty is removed from the investors mind.
“Am I comfortable with the valuations at these levels; the answer is YES. Would I take a bet right now, the answer is NO as the uncertainty is really very high. My systematic investment would continue but the lump sum investment would wait. I will get better opportunities in this volatile time,” he added.
In the 30-share BSE Sensex, share prices of 29 companies closed in red except for one company that is Hindustan Unilever. All sectors were hit by the negative sentiments today.
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