Bloodbath In Indian Stock Market

by · Gulte.com

The Indian stock market is facing a massive slump, with both the Sensex and Nifty dropping about 5% and hitting their lowest points in nine months. This sharp fall is a result of global market pressure, particularly following a major sell-off in the U.S. markets. The Volatility Index (VIX), a measure of market fear, has surged over 50%, reflecting the heightened uncertainty.

The crash is not just limited to India. Asian markets are also reeling, with Japan’s Nikkei 225 falling 7%, triggering a trading halt. U.S. futures are down by up to 1,500 points, further contributing to global market instability. Other asset classes like crude oil and gold are also down, with crude prices dipping below $60 per barrel.

This downturn is largely due to escalating global trade tensions. U.S. President Donald Trump has imposed a new wave of tariffs, calling it “Liberation Day.” In retaliation, China has slapped a 34% tariff on U.S. goods, leading to a market frenzy. Tech stocks in the U.S., including Tesla and Nvidia, saw steep drops, and the Nasdaq 100 entered a bear market.

India’s response to these developments has been more diplomatic, as the government seeks to negotiate better terms with the U.S. rather than retaliate aggressively. Despite this, the uncertainty around trade policies is keeping investors on edge.

At the moment, all sectors are facing heavy losses, with technology and metals taking the biggest hits. Nifty IT is down by 6%, and metal stocks are also in freefall. Small and mid-cap stocks have suffered even larger losses, with the BSE SmallCap index plunging nearly 7%.

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