Stock Market Crash Today: Why Indian Markets Plunged
On Monday, April 7, the Indian stock market took a major hit, reflecting the global selloff triggered by fears of a trade war sparked by US President Donald Trump’s new tariffs. The Sensex plunged nearly 4,000 points and the Nifty 50 fell below the 21,800 mark early in the day. Midcap and smallcap indices dropped sharply—some by as much as 10%.
Why did the market crash? Here are 5 main reasons:
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Global Meltdown:
Stock markets around the world are in deep red. Trump called tariffs “medicine” and made it clear he doesn’t mind market losses. Asian, European, and US markets have all seen major drops, shaking investor confidence everywhere. -
Tariffs Not Yet Priced In:
The global market hasn’t fully factored in the potential impact of these tariffs yet. With Trump’s tough stance, there’s little hope of quick resolution. Experts warn that Indian markets could face more pressure in the coming months, especially if a US recession affects corporate earnings here. -
Fears of Slowing Growth:
Higher tariffs may lead to rising inflation, hurting profits and consumer spending—both in the US and globally. This, in turn, raises concerns about an economic slowdown, which is spooking investors.
