The stock market has seen its second major decline of the year today, i.e. on Monday 7 April. The Sensex has fallen by 3000 points (4%) and is trading at around 72,300. Nifty has fallen by 900 points (4.50%). It is trading below 22,000. Earlier on 4 June 2024, the market had fallen by 5.74%. All 30 Sensex stocks are trading lower. Tata Steel, Tata Motors and Infosys have lost nearly 10%. Tech Mahindra, HCL Tech and L&T have also fallen by 8%. Among the sectoral indices of NSE, Nifty Metal has fallen the most by 8%. IT, Oil & Gas and Healthcare have fallen by about 7%. Auto, Realty and Media indices are down by 5%.
Key Reasons Behind the Stock Market Decline
Trump’s Reciprocal Tariff: The US has announced 26% tariffs on India, with new tariffs on many other countries, including 34% on China, 20% in the European Union and 25% on South Korea. These business measures are shaking the trust of investors globally.
China imposed a retaliatory 34% tariff: CIn response to American tariff, China On 34% perpetual tariff is imposed, which is ready to be effective on 10 April 2025. This tight-for-tat tariff war tension is increasing and causing uncertainty in the global stock markets.
Concerns of economic slowdown: Since tariffs increase the cost for goods, the demand may slow down, contribute to the economic recession. A dip has also been seen in crude oil prices, which is a sign of weak global economic activity. These developments have raised concerns among investors, leading to a decline in the current market.
The Impact on Smaller Stocks
The midcap index of Bombay Stock Exchange (BSE) has fallen by 1,850 points or 4.60% to 38,630. The smallcap index is trading at 42,999.82, down by 2,860 points or 6.20%.
Due to the sell-off in the stock market, the wealth of investors has decreased by about Rs 20 lakh crore. On Friday, April 4, the overall market cap of companies listed on BSE was Rs 404 lakh crore, which decreased to about Rs 383 lakh crore today at around 10 am on Monday.
Decline in Global Markets
In Asian markets, Japan’s Nikkei is down by 6%, Korea’s Kospi index is down by 4.50%, China’s Shanghai index is down by 6.50%. Hong Kong’s Hang Seng is down by 10%.
The Nifty, traded on the NSE International Exchange, is trading at the level of 22180, down by about 800 points (3.60%).
On April 3, America’s Dow Jones closed down 3.98%) at 40,545. The S&P 500 index fell 4.84%. The Nasdaq Composite fell 5.97%.
Financial commentator Jim Cramer has predicted a ‘Black Monday’ like 1987. Cramer said the US market could fall by 22% today.
On April 4, The Market Closed With a Fall of 930 Points
On 4 April, the Sensex closed at 75,364, down 930 points (1.22%). Nifty closed at 22,904, down 345 points (1.49%). Among the NSE sectoral indices, the Nifty Metal index fell by about 6.56%. Pharma, Realty and IT indices fell by about 4%. Auto and Media indices fell by about 3%.
