Live Updates: Stock Market Plunge After Trump Tariff Announcement - Rs 20.16 Lakh Crore Lost

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Post on Apr 07, 2025

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Live Updates: Stock Market Plunge After Trump Tariff Announcement - Rs 20.16 Lakh Crore Lost

A wave of panic swept through Indian markets today following US President Donald Trump's surprise announcement of new tariffs on Indian goods. The benchmark indices experienced a dramatic freefall, wiping out a staggering Rs 20.16 lakh crore (approximately $260 billion USD) in investor wealth. This unprecedented market crash has sent shockwaves through the global financial system and left investors reeling.

The announcement, which came without prior warning, targeted a wide range of Indian products, including textiles, agricultural goods, and certain manufactured items. The tariffs, ranging from 25% to 50%, are expected to significantly impact India's export-oriented industries and could trigger retaliatory measures from the Indian government.

Here's a breakdown of the key developments:

• 11:00 AM IST: The Sensex opened sharply lower, shedding over 1500 points in the first hour of trading. The Nifty 50 index mirrored this trend, experiencing a similar percentage drop. Trading volumes surged as investors scrambled to react to the news.

• 12:30 PM IST: Panic selling intensified, pushing the Sensex below the psychologically important 40,000-point mark. Many analysts pointed to the unexpected nature of the tariff announcement as a key driver of the market's sharp decline. Concerns over potential trade war escalation further exacerbated the situation.

• 2:00 PM IST: The Reserve Bank of India (RBI) released a statement acknowledging the market volatility and reaffirming its commitment to maintaining financial stability. The statement offered little immediate relief, however, as the selling pressure persisted.

• 3:30 PM IST: The market closed with significant losses. The Sensex ended the day down by over 1800 points, while the Nifty 50 fell by a similar percentage. The total market capitalization loss was estimated at Rs 20.16 lakh crore, representing a considerable blow to investor confidence.

Analysis: The Fallout and Potential Consequences

The impact of these tariffs extends far beyond the stock market. Experts warn of potential job losses in affected sectors, increased inflation due to higher import prices, and a slowdown in economic growth. The Indian government is expected to respond swiftly, potentially through retaliatory tariffs or other trade measures.

What to Watch For:

• Government Response: The Indian government's response will be crucial in determining the market's trajectory in the coming days and weeks. Any retaliatory measures could further escalate tensions and exacerbate market volatility.

• Global Market Reaction: The impact of the Trump administration's decision extends beyond India. Global markets are closely watching the situation, anticipating potential spillover effects.

• RBI Intervention: The RBI's role in mitigating the market's downturn will be closely scrutinized. Further interventions to stabilize the market cannot be ruled out.

Investor Sentiment and Future Outlook:

The current market plunge reflects a significant erosion of investor confidence. The unexpected nature of the tariff announcement has left many investors feeling vulnerable. The near-term outlook remains uncertain, with much depending on the unfolding geopolitical developments and the response from both the Indian and US governments. The situation demands close monitoring and a cautious approach from all stakeholders. Experts advise investors to stay informed and consult with financial advisors before making any rash decisions.

Keywords: Stock Market Crash, Trump Tariffs, India, Sensex, Nifty, Market Plunge, Economic Impact, Trade War, RBI, Investor Sentiment, Market Volatility, Financial Crisis.