Indian Stock Market Crashed: Sensex Plunges Over 3,900 Points

The Indian stock market witnessed a massive crash on Monday, with the Sensex plunging 3,939.68 points (5.22%) to 71,425.01 and the Nifty falling 1,160.8 points (5.06%) to 21,743.65 in early trade. The sharp decline wiped out investor wealth worth ₹20.16 lakh crore, reflecting a deep sell-off in equities.

This crash mirrors a broader global slump, with other Asian markets also tumbling—Hong Kong's Hang Seng fell nearly 11%, Japan’s Nikkei 225 dropped 7%, Shanghai’s SSE declined over 6%, and South Korea’s Kospi slid 5%.

The primary trigger for this panic selling was the escalating trade tensions between the U.S. and China. Former U.S. President Donald Trump’s reimposed tariffs, combined with China’s retaliatory 34% levies on U.S. imports, have sparked fears of a prolonged global trade war.

Experts warn that these reciprocal tariffs are increasing market uncertainty. Sanjeev Prasad of Kotak Institutional Equities noted that Indian markets will closely track how the trade conflict evolves and how domestic investors respond.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the situation is marked by "heightened volatility and extreme uncertainty." With no clear resolution in sight, he advised investors to adopt a "wait and watch" approach.

The current turmoil follows last week’s decline when the Sensex lost over 2,000 points and the Nifty fell by more than 600 points, signaling sustained investor anxiety amid global economic tensions.