Stock Market Crash: Trump tariff havoc in stock market, Sensex fell 1100 points
Stock Market Crash: The first trading day of the new financial year i.e. 1 April 2025 was not good for the stock market. Indian markets opened in the red amid US President Donald Trump's new tariff policy and global uncertainties. Sensex fell 639.13 points to 76,775.79 in early trade, while Nifty fell 180.25 points to 23,339.10.
Selling in the market intensified after early trade. At 11:28 am, the Sensex fell sharply by 1,121.99 points (1.45%) to 76,292.93 and the Nifty fell 277.40 points (1.18%) to 23,241.95.
Selling in IT stocks due to Trump tariffs
The reason for the fall in the stock market is believed to be the retaliatory tariffs imposed by the US on its trading partner countries from April 2. Selling pressure is being seen in IT stocks. In early trade, the Nifty IT index has slipped 1.37 percent. Apart from this, financial, pharma, FMCG, metal, realty and private bank indices are in the red mark. At the same time, auto, PSU bank and energy are in the green mark.
Adani Enterprises jumped more than 1 percent
However, almost all the shares of Adani Group opened in the green today. In early trade, flagship company Adani Enterprises was trading with a jump of more than 1 percent. Apart from this, Adani Ports also saw a rise of 1.44%. Adani Green Energy, Adani Power, Adani Energy Solutions and Ambuja Cement were also trading with gains.
3 major reasons for the decline in the market
1.Trump's new tariff rules
US President Donald Trump has announced that the same global tariff will be applicable on all countries from April 2. He has called it "Liberation Day". This decision may affect international trade, due to which investors are nervous.
2.Weak signals from global markets
Global markets saw a mixed trend. The S&P 500 index on Wall Street in the US closed 0.55% higher at 5,611.85, while the Nasdaq fell 0.14% to 17,299. However, the Dow Jones index closed at 42,001.76 with a gain of 418 points. There was a slight rise in Asian markets on Tuesday morning, but Indian markets are showing a different trend.
3.RBI monetary policy meeting
Sensex-Nifty witnessed tremendous rise in FY 2024-25
Indian stock market witnessed a strong rise during the financial year 2024-25. The Sensex gained 3,763.57 points (5.10%) and the Nifty gained 1,192.45 points (5.34%) throughout the year. This increased the wealth of investors by a total of Rs 25.90 lakh crore.
However, on the last trading day of the financial year, March 28, 2025, the market closed with a slight decline. The Sensex closed 191.51 points down at 77,414.92.
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Long weekend due to market closure
Indian stock markets (BSE and NSE) were closed on March 31 due to Eid ul-Fitr. This gave investors a three-day long weekend, as March 30 and 31 were already Saturday and Sunday holidays.
What should investors do next?
The market may continue to fluctuate until there is clarity on the US tariff policy.
It will be important to keep an eye on the banking and financial sectors before the RBI policy meeting.
For long-term investors, the fall can be a buying opportunity, but there is a need to be cautious in the short term.
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