In one of the most dramatic market plunges in recent history, the Sensex crashed nearly 4,000 points in early trading today, wiping out over Rs 20 lakh crore in investor wealth within seconds. This shocking freefall comes on the heels of sweeping tariffs imposed by U.S. President Donald Trump, sparking global panic and pushing Indian equity markets to a 10-month low.
📉 Sensex and Nifty in Deep Red
The BSE Sensex opened down 3,939.68 points to hit 71,425.01, a drop of more than 3.5% since the last trading session. Meanwhile, the Nifty 50 plummeted 1,160.8 points to 21,743.65, breaking crucial support levels and sending shockwaves through Dalal Street.
The massive Sensex fall triggered automatic sell-offs and panic among investors, with both indices reflecting the severe impact of Trump’s new country-specific tariff policy, which slapped a 26% duty on Indian goods, alongside a 10% baseline duty on all global imports.
🌍 Global Turmoil Amplifies the Sensex Crash
The Sensex nosedive was part of a broader global market meltdown:
- Asian markets opened to heavy sell-offs:
- Hang Seng: Down 10%
- Nikkei (Japan): Dropped 6.5%
- Shanghai Composite (China): Fell over 4%
- Taiwan Index: Collapsed nearly 10%
- Singapore Index: Plunged 8%
- US Futures: Deep in the red, signaling more pain when Wall Street opens.
This panic across global equities was triggered by Trump’s hardline stance on trade, which he defended by saying tariffs are a necessary “medicine to fix the system.” Market experts, however, fear that these actions may lead to a global recession.
đź’¸ Rs 20 Lakh Crore Investor Wealth Wiped Out
Within just 10 seconds of market opening, investor wealth amounting to Rs 20 lakh crore evaporated, reflecting the sheer scale of the sell-off. The sharp fall in Sensex and Nifty has not only shaken retail and institutional investors but has also sparked fears of a prolonged bearish phase in Indian markets.
The Indian rupee also took a hit, falling by 30 paise to trade at 85.74 against the US dollar.
🧠Experts Weigh In: What’s Next for Sensex?
Top market experts have urged caution, noting that India’s economic fundamentals remain strong, but the external shock caused by U.S. trade policy is creating ripple effects.
“India is facing the heat not due to domestic instability but because of global interconnectedness. A comprehensive fiscal and monetary reform package is now necessary to stabilize the economy,” said Ajay Bagga, market analyst.
“Nifty has breached its first support and is closing in on the second. If the Sensex doesn’t hold key levels, we’re in for a deeper correction,” said Sunil Gurjar, SEBI-registered analyst.
⚠️ What Should Investors Do?
With the Sensex crashing, panic-selling is on the rise, but seasoned investors suggest:
- Avoid impulsive selling during high volatility
- Stay invested in high-quality blue-chip stocks
- Monitor global developments around U.S. trade policies
- Diversify portfolios to mitigate risk
đź“Š Sensex Outlook: Short-Term Bearish, Long-Term Hopeful
While today’s Sensex plunge is historic and alarming, experts advise against knee-jerk reactions. India’s robust domestic consumption, growing digital economy, and strong banking sector fundamentals could offer support in the medium to long term — provided there is swift policy action from the government to shield the economy from global shocks.
