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Indian Stock Markets Crash Amid U.S. Tariff Shock

On April 7, 2025, Indian stock markets saw a massive plunge following the U.S. government’s announcement of new tariffs on imports from countries including India and China. The move triggered fears of a global trade war and sent shockwaves through financial markets worldwide.

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Market Performance

• Sensex opened nearly 4,000 points lower, marking a fall of over 3.5% from the previous session.
• Nifty dropped over 1,000 points in early trading, reflecting sharp investor panic.

This sudden crash resulted in an estimated erosion of nearly ₹20 lakh crore in investor wealth within minutes of the market opening.

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Sectoral Impact

All 13 major sectors listed on the Nifty registered declines. The worst-hit sectors included:

• Information Technology (IT)
• Metals
• Financials

These sectors faced heavy selling pressure amid global uncertainty and export-related concerns.

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Currency Impact

The Indian rupee also took a hit, closing 0.7% lower at 85.83 against the U.S. dollar. This marked the steepest one-day fall in nearly three months, adding to the pressure on India’s financial markets.

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Global Repercussions

The market crash was not limited to India. Global stock indices were also deeply affected. The UK’s FTSE 100 fell by 6%, hitting a one-year low, and European markets saw similar sharp declines. Investors worldwide reacted negatively to fears that the tariffs could escalate into a broader economic slowdown.

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Government and Expert Reactions

International criticism of the new U.S. tariff policy came swiftly, with countries like China and members of the European Union hinting at possible retaliatory measures. Financial analysts warned that these developments could significantly slow global economic growth. Some institutions even revised their forecasts, increasing the probability of a U.S. recession in the coming months.

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Outlook

The situation remains volatile. As markets brace for further shocks, investors and policymakers are keeping a close eye on trade developments and global economic indicators. The focus now shifts to how governments and central banks respond to cushion their economies from the ripple effects of rising trade tensions.

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_{Curated by Gurdeep Singh : Source : https://news.google.com/}