Dalal Street witnessed a massive meltdown on April 7, with the Sensex and Nifty tumbling over 3%, wiping out a staggering ₹16 lakh crore in market capitalisation in just one trading session. The selloff — the sharpest intraday fall since June 2024 — sent shockwaves across markets, as fears of a global trade war triggered widespread panic among investors.

It was nothing short of a bloodbath on the bourses today,” said a market expert, describing the day’s action.

Markets in Freefall

By 2:50 pm, the Sensex had tanked 2,707 points (3.59%) to 72,656.86, while the Nifty plunged 884 points (3.86%) to 22,020.20. The mood on Dalal Street was somber, with more than 3,200 stocks declining, and only 327 managing to stay in the green.

This steep fall erased weeks of gains and left investors staring at heavy losses across portfolios.

What Sparked the Crash?

The root of the panic was traced back to Donald Trump’s aggressive tariff stance, which rattled global markets. Investors are concerned that a full-blown global trade war could be on the horizon, especially after countries like China, Canada, and the European Union hinted at retaliatory tariffs on U.S. goods.

The fear of a global recession, combined with inflation pressures and slowing consumption, is what spooked investors today,” explained Siddhartha Khemka, Head of Research and Wealth Management.

With uncertainty growing over whether any resolution will be reached before the next wave of tariff hikes, the selloff turned into a stampede, pulling down even fundamentally strong stocks.

What Should Investors Do Now?

Despite the chaos, experts are urging investors to stay calm and avoid panic selling. Khemka advised against taking hasty decisions or placing risky bets in such a volatile market.

This is a time for a disciplined, long-term approach. Investors should look at this correction as an opportunity to accumulate strong, domestic-focused companies,” he said.

Sectors like consumption, financial services, and banking are expected to hold up better against global headwinds compared to export-heavy segments such as IT, pharma, and metals.

Looking Ahead

While the immediate outlook remains clouded by geopolitical uncertainty and economic concerns, the long-term fundamentals of the Indian market remain intact. Market veterans believe that once global sentiment stabilizes, Indian equities may recover, supported by domestic demand and structural growth.