Black Monday On D-Street? Sensex Crashes 4000 Points As Donald Trump’s Tariffs Create Havoc

Bears took firm control of Dalal Street on Monday, April 7, as the Indian stock market witnessed a massive selloff at the opening bell. The Sensex crashed over 4,000 points and nifty over 5% in the early trade.

The BSE Sensex opened at plummeted 3,379.19 points or 4.48% to hit 71,985.50, while the NSE Nifty tumbled 1,146.05 points or 5% to 21,758.40.
 

Opening Bell: Bloodbath on Dalal Street

The combined market capitalization of BSE-listed companies dropped sharply by Rs 19.4 lakh crore to reach Rs 383.95 lakh crore.

Across the board, major sectors faced significant losses, with Nifty Metal plummeting by 8% and Nifty IT declining by over 7%. Meanwhile, Nifty Auto, Realty, and Oil & Gas sectors each saw declines exceeding 5%. In the broader market, the small-cap index tumbled by 10% and the mid-cap index by 7.3%.

In early trade, the GIFT Nifty mirrored the carnage, falling over 900 points, hinting at the storm that lay ahead. The sharp fall reflects panic selling across sectors as investors globally rushed to the exits to safeguard their capital amid mounting macroeconomic and geopolitical concerns.

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Wall Street: Dow Futures Crash, Tech Rout Deepens
The mayhem in Indian markets came on the back of another brutal session brewing in the US. On Sunday evening, Dow Jones Industrial Average futures plunged 979 points, or 2.5%. S&P 500 futures dropped 2.9%, while Nasdaq-100 futures were down a staggering 3.9%.

This follows a historic selloff in US markets last week. On Friday, the Dow lost 2,231 points — part of back-to-back 1,500+ point losses for the first time ever. The S&P 500 sank 6% for its worst day since March 2020, pushing it down 10% in just two sessions. The tech-heavy Nasdaq Composite officially entered bear market territory after falling 22% from its peak.
 

Commenting on the downturn, former US President Donald Trump said Sunday night, “I don’t want anything to go down, but sometimes you have to take medicine to fix something.” He added, “We have a trillion-dollar trade deficit with China... unless we solve that problem, I’m not going to make a deal.”

Asia-Pacific Markets Extend Losses
Markets across the Asia-Pacific region weren’t spared either, as fears of a global trade war and economic slowdown roiled investor sentiment.

Hong Kong’s Hang Seng Index led the decline, plunging 8.95%, while China’s CSI 300 index fell 5.41%. Japan’s Nikkei 225 nosedived 5.92% to hit an 18-month low, with trading in futures halted briefly due to circuit breakers. South Korea’s Kospi dropped 4.11%, and the Kosdaq was down 3.41%. Australia’s ASX 200 also fell 3.78%, entering correction territory after an 11% drop from February highs.

Indian Recap: April 4 Sell-Off Preceded Monday's Rout
Friday, April 4, also saw sharp declines in Indian equities. The Sensex had tanked 930.67 points (1.22%) to close at 75,364.69, breaching the 76,000 mark. The Nifty 50 lost 345.65 points (1.49%) to end at 22,904.45.

Monday’s deeper slide marks an escalation of bearish sentiment, reflecting fears of a synchronized global economic slowdown, persistent inflationary pressures, and lack of investor appetite for risk assets.