Indian Markets Nosedive Amid Trump Tariff Turmoil

Indian stock markets suffered significant losses due to Trump's reciprocal tariffs, igniting fears of a global trade war. The Sensex and Nifty both fell by 3%, although some losses were mitigated. Analysts caution investors to focus on domestic themes as international tensions continue to impact global markets.

Indian stock markets took a heavy blow at the start of the week, driven by U.S. President Donald Trump's imposition of reciprocal tariffs. The aggressive trade policy has sparked a worldwide equity sell-off, with India's Sensex plunging by 5% in early trading before closing 3% down at 73,137.90 points, losing 2,226 points from its previous closing. Nifty similarly ended 3% lower, settling at 22,161.60 points.

Vinod Nair, Head of Research at Geojit Investments Limited, commented on the market upheaval, saying, "The carnage over high US tariffs and international retaliation may set the stage for a trade war." Nair highlighted that sectors like IT and metals have underperformed due to concerns over inflation and slower growth potentially leading to a U.S. recession.

Despite the international jitters, Nair pointed out that India's relative impact may be limited compared to other nations and advised investors to maneuver cautiously, emphasizing the resilience of domestic-focused sectors for future gains. The global equity slump follows Trump's broad trade tariff measures, which have heightened fears of a global economic downturn.

As Indian indices concluded the week in a gloomy state, down approximately 2,100 points, focus is projected to shift towards upcoming RBI monetary policy decisions and the impending corporate earnings announcements. President Trump's commitment to matching foreign tariffs continues to stir global market uncertainties.

(With inputs from agencies.)