India’s Stock Market Crashes After Trump’s Shock Tariff Move – ₹3 Lakh Crore Wiped Out in Minutes!
Mumbai(The Uttam Hindu): Indian stock markets witnessed a brutal meltdown on Thursday morning after U.S. President Donald Trump announced a 25% tariff on Indian exports, effective from August 1. The sudden announcement sent shockwaves across global markets, with India facing the worst of the fallout.
The BSE Sensex opened sharply lower at 80,695.50, falling nearly 800 points from its previous close of 81,481.86. The Nifty 50 also plunged over 200 points, slipping below the crucial 24,650 mark. Within minutes of opening, both indices extended losses, triggering widespread panic among retail and institutional investors.
The sharp drop wasn't just limited to large-cap stocks. Midcap and smallcap shares were hit equally hard, with both indices declining by over 2%, signaling a broad-based sell-off. Stocks in export-heavy sectors such as IT, pharma, and textiles bore the brunt of the news, as concerns grew over India's future trade prospects with the U.S.
Within just 10 minutes of trade, the total market capitalization of BSE-listed companies fell from ₹452 lakh crore to ₹449 lakh crore, erasing nearly ₹3 lakh crore (approx. $36 billion) in investor wealth.
Experts attribute this sudden plunge to heightened uncertainty in India-U.S. trade relations, especially after President Trump’s pointed remarks against India’s deals with countries like Russia and Iran. His administration has repeatedly warned of stricter actions, including sanctions and economic penalties, if India continues its current global trade approach.
“The market is reacting more to the geopolitical pressure and future uncertainty than the tariff itself,” said one market analyst. “If this trade tension escalates, we may see more volatility in the coming days.”
Investors are now anxiously awaiting clarity on whether India and the U.S. will open dialogue channels to de-escalate the brewing tension or if this is the beginning of a prolonged economic standoff.