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Nifty Nosedives: A Black Monday on Dalal Street
By Himanshi Singh | Updated Apr 7, 2025 16:39 IST | Photo: ET Now Digital
Monday, April 7th, 2025, will be remembered as a day of significant turmoil on the Indian stock market. A global selloff triggered a massive crash, wiping out an estimated Rs 20 lakh crore (2 trillion rupees) in investor wealth. The benchmark indices, Sensex and Nifty 50, plummeted over 3 percent, painting a grim picture for investors. Despite the widespread losses, a few stocks bucked the trend, offering a glimmer of hope amidst the chaos. This article delves into the details of this market crash, highlighting the key factors and the surprising performance of select stocks.
A Global Meltdown
The primary culprit behind Monday's crash was the escalating global uncertainty, fueled by rising trade tensions and fears of a looming recession. Weak cues from Wall Street, which saw significant losses on Friday, exacerbated the negativity. This global anxiety spilled over into Indian markets, causing a sharp decline across most sectors. The Nifty Metal index suffered the most significant loss, plunging by a staggering 7 percent.
Unexpected Winners
While the majority of stocks were in the red, some managed to post gains. Hindustan Unilever (HUL) and Godrej Consumer Products, both FMCG giants, saw modest increases. Britannia Industries also closed slightly higher. However, the most significant outlier was Siemens, which experienced a remarkable 15.59 percent surge on the NSE 100, primarily due to going ex-demerger. This illustrates the unpredictable nature of market reactions, even during periods of intense volatility.
What Triggered the Crash?
The imposition of steep tariffs by the US President Donald Trump on numerous countries ignited the global sell-off. China's retaliatory tariffs further fueled fears of a full-scale trade war. This uncertainty, coupled with already present recessionary anxieties, sent shockwaves through global markets. Experts like Vinod Nair of Geojit Investments Limited highlighted the impact on sectors like IT and metals, particularly vulnerable to inflation and slow growth scenarios.
Looking Ahead
The Indian stock market faced a severe setback on Monday, a reflection of larger global economic anxieties. While a few stocks defied the trend, the overall picture points to heightened market volatility and uncertainty. Investors are advised to exercise caution and consult with financial advisors before making any investment decisions. The coming weeks will be crucial, with the RBI's monetary policy meeting and the start of corporate earnings season adding further layers of complexity to the market outlook.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
