Sensex crashes 2,200 points amid tariff turmoil

New Delhi

The Indian stock market saw a sharp fall on Monday as fears of a global trade war sparked panic among investors. This was after US President Donald Trump introduced new reciprocal tariffs, triggering heavy selling across world markets, including India.

The Sensex opened the week with a sharp decline, falling by 5 per cent in early trading. Although it recovered slightly later in the day, it still ended 3 per cent lower at 73,137.90 — a drop of 2,226 points. The Nifty also ended 3 per cent lower, closing at 22,161.60.

"The market tumbled as the carnage over high US tariffs and the retaliation by other countries may kickstart a trade war," said Vinod Nair, Head of Research at Geojit Investments.

He added, "Sectors like IT and metals have underperformed relative to the broader market due to the risk of high inflation with slower growth that may result in a potential recession in the US."

Nair also advised investors to be cautious, saying, "Though the overall impact on India may be limited when compared with other countries, investors are advised to play cautiously during this fray. Focus will be on pure-play domestic themes, where the rebound is likely to be fair when the dust settles."

Trump’s push for matching foreign tariffs has shaken markets worldwide. As global worries continue, all eyes will now be on the RBI’s monetary policy and upcoming corporate earnings.