The Indian stock market witnessed a massive crash on Monday, with the Nifty 50 plummeting 1,150 points in early trade. This sharp decline comes amid a global sell-off triggered by fears of an escalating trade war.
The Nifty 50 opened below the crucial swing low of 21,964 made on March 4, erasing nearly all gains from its recent 1,900-point recovery. The index’s sudden fall signals increased panic among investors and heightened volatility across global equity markets.
All Nifty 50 stocks opened in the red, with companies like Tata Motors, Trent, and Tata Steel falling as much as 10%. Notably, 11 Nifty stocks touched 52-week lows, deepening concerns of a broader market breakdown.
The fall was in line with sharp declines in global markets, especially after a steep two-day sell-off in US stocks. Wall Street saw a staggering $5 trillion erosion in market capitalization, rattling investor sentiment across the globe.
In Asia-Pacific, markets tumbled between 4-6%, while US futures were down around 4% on Sunday night. Indian equities, deeply linked to global trends, mirrored the same negative cues with heavy selling pressure from the opening bell.
Amid the chaos, US President Donald Trump commented that “sometimes medicines need to be taken to fix something,” hinting that market pain may be part of broader policy moves. His trade policies and tariffs are fueling fears of a prolonged trade conflict.
Back home, investors are also bracing for key events this week, including the RBI policy announcement and TCS’s Q4 results. With the Nifty slipping below critical support levels, technical indicators have turned largely irrelevant amid ongoing panic selling.
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Global Cues Behind the Stock Market Crash
Wall Street’s Sharp Decline
US markets faced a brutal sell-off on Friday. The S&P 500 fell 6%, the Dow Jones dropped 5.5%, and the Nasdaq plunged 5.8%. It marked Wall Street’s worst crisis since the COVID-19 pandemic hit.
Futures Point to More Pain
US futures signaled continued weakness on Monday. S&P 500 futures fell 4.2%, Dow futures lost 3.5%, and Nasdaq futures crashed 5.3%, reflecting persistent fears of a global economic downturn due to the trade war escalation.
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Asian Markets Sink
Asian markets followed Wall Street’s decline. Japan’s Nikkei 225 dropped nearly 8%, Australia’s ASX 200 tumbled over 6%, and South Korea’s Kospi slipped 4.4%, indicating widespread panic across regional markets.
Oil Prices Under Pressure
Crude oil prices plummeted amid economic slowdown fears. US crude dropped 4% to $59.49 per barrel, while Brent crude slipped $2.25 to $63.33, reflecting reduced global demand expectations as trade tensions intensified.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
