Sensex Crashes Over 2,200 Points in Worst Trading Day in 10 Months Amid Global Recession Fears
In its steepest single-day fall in nearly 10 months, the benchmark BSE Sensex plummeted 2,226.79 points on Monday to close at 73,137.90, while the broader NSE Nifty50 shed 742.85 points, settling at 22,161.60. The bloodbath on Dalal Street came as investor sentiment turned sharply negative over fears of a global recession and looming trade war triggered by former US President Donald Trump’s call for reciprocal tariffs.
Market analysts said the meltdown was largely influenced by rising geopolitical tensions and concerns that Trump’s proposed tariff regime could trigger retaliatory actions from global trade partners, leading to a widespread economic slowdown.
“Trump’s tariffs triggered a global equity meltdown, and the Indian markets were no exception, starting the week on a highly negative note and a gap-down opening of over 1,000 points,” said Vinod Nair, Head of Research at Geojit Financial Services.
All sectoral indices ended in the red, with heavy losses recorded in Metal, IT, and Realty segments. The broader market also bore the brunt, with mid-cap and small-cap indices declining over 3.5%, underperforming the frontline indices.
“Selling pressure was relentless across sectors. Metal and Realty were hit the hardest, indicating deep-rooted anxiety among investors,” Nair added.
The volatility index (India VIX) spiked sharply, reflecting nervousness among traders. Market experts noted that the immediate support for Nifty lies around 21,750, while resistance is seen near 22,300.
“In the short term, the market’s trajectory will hinge on global developments around the tariffs. Any positive news may lead to a sharp pullback, but continued negative sentiment could drive further downside,” Nair observed.
Investors are now closely watching developments in the US and other major economies, hoping for de-escalation in trade rhetoric. Until then, analysts advise caution, especially in the mid- and small-cap segments, which remain highly vulnerable to global shocks.
