Sensex Tanks 750 Points, Nifty Slips Below 23,000 as Trump Tariffs Shake Global Markets

Indian equity markets were gripped by a wave of intense selling on Friday, as escalating fears of a global trade war and heavy foreign institutional outflows triggered a broad-based selloff across sectors. The BSE Sensex plunged 760.34 points, or 1.00 percent, to close at 75,535.02, while the NSE Nifty slumped 286.70 points, or 1.23 percent, to settle at 22,963.40. The intraday low for the Sensex touched 75,475.21, reflecting deep investor anxiety over mounting global uncertainties.

The sharp correction wiped out significant investor wealth, with nearly 2,500 stocks ending in the red on the BSE. Only 835 stocks advanced, while 110 remained unchanged. All sectoral indices closed in negative territory, with particularly steep losses in information technology, pharmaceuticals, and metals. The broader BSE Midcap and Smallcap indices also tumbled over 2 percent each, further underscoring the widespread nature of the selloff.

Global Trade War Fears Escalate as Trump Unleashes Sweeping Tariffs

The renewed imposition of sweeping tariffs by the United States under President Donald Trump has heightened fears of a full-scale trade war, unsettling global investors. Trump’s reciprocal tariff regime, announced on April 2, includes a blanket 26 percent tariff on Indian exports and a 10 percent base duty on goods from other countries. This has prompted swift retaliatory actions from major trade partners such as China and Canada.

In response, China demanded an immediate rollback of the tariffs and warned of decisive countermeasures. Canada followed suit, slapping a 25 percent import duty on U.S.-made automobiles. The spiraling tit-for-tat measures have cast a shadow over global growth prospects and driven a selloff in equities across major global markets.

“Markets are going through heightened uncertainty which is likely to persist. A global trade war has been triggered by the US, and retaliatory tariffs from China, the EU and others are now expected. This will prolong volatility and hurt global growth,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Key Points:

• U.S. imposed a 26% tariff on Indian exports, prompting global retaliation

• China and Canada issued strong countermeasures against U.S. imports

• Global trade war fears are impacting investor confidence and valuations

U.S. Market Rout Spurs Broad-Based Asian Selloff

The fallout from Trump’s tariff salvo was immediately felt on Wall Street, where major indices recorded their steepest single-day declines in years. The S&P 500 fell 4.9 percent, while the tech-heavy Nasdaq 100 crashed 5.5 percent, erasing nearly $2.5 trillion in market value. This dramatic overnight slump spilled over into Asian markets, compounding the sense of global unease.

Tokyo’s Nikkei 225 dropped over 3 percent, and South Korea’s KOSPI slid nearly 2 percent during early trading. However, mainland Chinese and Hong Kong markets remained closed for the Qingming Festival, offering temporary insulation from the global panic.

Back home, Indian indices opened gap-down and continued to lose ground as selling pressure mounted. The negative global cues only reinforced local jitters about a possible downturn in global economic activity, especially in export-driven sectors.

Highlights:

• Wall Street suffered steep losses: S&P 500 down 4.9%, Nasdaq 100 down 5.5%

• Asian equities followed suit with Nikkei and KOSPI sliding significantly

• Weak global cues contributed to panic-driven selling on Dalal Street

Sector-Wide Bloodbath: IT, Pharma, Metals Under Severe Pressure

All thirteen major NSE sectoral indices closed in deep red, with the heaviest losses recorded in the IT, pharmaceutical, and metals sectors. Tech stocks remained under pressure, continuing their slide from earlier this week. The Nifty IT index plunged over 2 percent as bellwethers such as Infosys, HCL Technologies, and Tech Mahindra declined sharply.

Pharma stocks also suffered amid speculation that the U.S. might target pharmaceutical imports next. President Trump, while speaking aboard Air Force One, indicated that pharmaceuticals could be treated as a “separate category” under upcoming tariff reviews, stoking fears of extended export disruptions for Indian drugmakers.

Metals, which are heavily dependent on global trade flows, bore the brunt of sentiment collapse. Tata Steel was one of the top Nifty losers, while Hindalco and JSW Steel also saw significant declines.

Highlights:

• Nifty IT index dropped over 2%, all components in the red

• Pharma stocks fell on potential U.S. tariffs targeting drug imports

• Metals declined sharply amid fears of disrupted global trade routes

Top Laggards: L&T, Tata Motors, Tata Steel, Infosys Drag Benchmarks Lower

Among individual stocks, heavyweights such as Tata Motors, Tata Steel, and Larsen & Toubro were prominent losers. Tata Motors, still reeling from tariff impacts on its Jaguar Land Rover unit, fell over 5 percent. Tata Steel was down 4.6 percent amid worries over reduced global steel demand. Engineering major L&T also declined more than 3.5 percent due to its exposure to global infrastructure contracts.

IT majors like Infosys and HCL Technologies declined between 2–3 percent, tracking the losses in the Nasdaq. Other notable laggards included Sun Pharma, Maruti Suzuki, and IndusInd Bank.

Highlights:

• Tata Motors fell 5% amid continued pressure on JLR’s U.S. exposure

• Tata Steel declined 4.6% as global metal prices weakened

• L&T, Infosys, and Sun Pharma contributed to index-level weakness

FIIs Resume Aggressive Selling as Risk Appetite Wanes

Foreign Institutional Investors (FIIs) resumed heavy selling on Thursday, offloading equities worth Rs 2,806 crore, as per NSE provisional data. This marked a return to risk-off sentiment after a brief window of inflows in late March. In contrast, Domestic Institutional Investors (DIIs) remained net buyers, purchasing shares worth Rs 221.47 crore, but their support was insufficient to counter the FII exit.

The selling by FIIs has intensified pressure on valuations, particularly in high-beta sectors. With market volatility spiking and global macroeconomic conditions deteriorating, institutional investors are expected to adopt a cautious stance heading into the earnings season.

Highlights:

• FIIs sold equities worth Rs 2,806 crore on April 3

• DIIs remained net buyers but failed to counter overall selling pressure

• Renewed risk aversion evident in high-beta sectors and smallcap space

RBI MPC and Powell Speech in Focus Next Week

Investors are also exercising caution ahead of key macroeconomic events, including the upcoming RBI Monetary Policy Committee (MPC) meeting and an address by U.S. Federal Reserve Chair Jerome Powell. Powell’s remarks are expected to offer insight into the Fed’s view on economic resilience in the face of rising tariffs.

Domestically, the RBI is likely to announce its policy decision on April 9. A Moneycontrol poll of 21 economists and market participants suggests that a 25 basis point rate cut is expected as the central bank seeks to support growth amid increasing external uncertainties.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, said, “After a gap-down opening, the market took support near 75,800 (Sensex) and 23,150 (Nifty), but failed to cross the key resistance zone of 77,000/23,350. This suggests a lack of clear direction in the near term. If the indices breach the support levels of 75,800 and 23,150, we may see further downside towards 75,300/23,000 or even lower.”

Highlights:

• RBI MPC to meet April 9, likely to announce 25bps rate cut

• Fed Chair Powell’s speech could sway global sentiment further

• Technical levels suggest risk of deeper correction without strong support