How Indian Markets Lost Rs 20 Lakh Crore In 10 Seconds

New Delhi: Kicking off the week with turmoil, Indian equity markets plunged to a 10-month low on Monday, erasing over ₹20 lakh crore in investor wealth within seconds of opening. The carnage was triggered by US President Donald Trump's aggressive new tariffs, which sent shockwaves across global markets and sparked a massive sell-off.

The Sensex opened nearly 4,000 points lower, falling over 3.5% from its previous close, while the Nifty crashed more than 1,000 points, reflecting widespread panic among investors. The meltdown mirrored steep declines across Asian equities, with US futures also pointing toward deep losses when Wall Street reopens.   

Trump's tariffs, touted by the White House as a "golden period" booster for American industries, are country-specific and reach up to 50%. India has been slapped with a steep 26% rate, in addition to a 10% baseline duty applicable to all nations. The move has sparked alarm among Indian exporters and traders, who fear a sharp hit to outbound shipments and global competitiveness.  

European markets, too, opened in the red as the wave of panic selling continued to ripple across continents. Besides, Taiwan's market, reopening after a two-day holiday, nosedived by 20%, while Hong Kong’s Hang Seng index slid 10% before a slight recovery. Japan’s Nikkei 225 dropped by 5.79%, South Korea’s KOSPI fell 4.14%, and China’s Shanghai Composite lost 6.5%. Taiwan’s Weighted Index plunged 9.61% in early trade. Even Australia wasn’t spared; the S&P/ASX 200 fell by 3.82%, reflecting the scale of the panic sweeping through the Asia-Pacific region.

Unfazed by the market mayhem, President Trump remained defiant, likening the tariffs to "medicine" needed to fix what he called long-standing unfair trade practices. But for Indian investors, Monday’s opening bell brought no relief, just a staggering ₹20 lakh crore vanishing act in the blink of an eye.   

Indian Equities Sink 3.5% Amid Global Market Meltdown

Indian stock markets opened with a thud today, with benchmark indices plunging as investor panic gripped Dalal Street. The Sensex crashed 3,939.68 points to 71,425.01 as trading resumed at 9 AM post-weekend, while the Nifty nosedived 1,160.8 points to 21,743.65 in early trade—both logging a steep 3.5% decline.

By noon, the Sensex, comprising the top 30 companies listed on the Bombay Stock Exchange, remained deep in negative territory, down over 3,000 points. The Nifty had breached the crucial 22,000 mark, highlighting the intensity of the sell-off sweeping across sectors.

Major blue-chip stocks led the fall, with Tata Steel, Tata Motors, HCL Tech, L&T, Tech Mahindra, and Infosys tumbling by up to 10%.

The broader market wasn’t spared either. Midcaps and smallcaps bore the brunt of the rout, with the BSE Midcap index crashing 1,695 points to 38,813 and the Smallcap index plunging 2,525 points to 43,341.

Adding to the jitters, the Indian rupee opened 30 paise lower at 85.74 against the US dollar, reflecting heightened global risk aversion and accelerating capital outflows amid escalating US trade tensions.   

What Experts Are Saying About the ₹20 Lakh Crore Market Crash

As Indian equity markets witnessed a historic crash, experts are calling for urgent government intervention to help steer the economy through what’s fast becoming a global financial storm triggered by US President Donald Trump’s tariff blitz.

Ajay Bagga, a well-known banking and market expert, said that while India’s domestic economy remains relatively stable, it’s being swept into global volatility due to interconnected portfolio flows.

“India will face the heat, not due to domestic reasons, but as an interlinked chain in the global portfolio flows,” he said. “We need a strong fiscal, monetary, and reform package to shield the domestic economy from the global economic winter that seems to be setting in.”

Bagga described the US tariffs, some of the highest imposed in over a century, on all major trading partners as an “Economic-Nuclear policy,” now delivering consequences worldwide. The tremors were first felt in the US, where a staggering $5.4 trillion was wiped off markets in just two days, triggering panic selling across Asian indices.

Experts say the way forward may lie in diplomacy. A rollback or at least a deferral of the reciprocal tariffs by the US administration could bring some relief to global markets. However, officials in the Trump administration have indicated that the tariffs will likely stay in place for the next few weeks, possibly months.

Adding to the financial pressure, the price of Brent crude has also hit a 52-week low, trading at $63.97 at the time of this report. With US futures also tumbling, Dow Jones down 2.22%, the global sell-off shows no signs of slowing, unless policy signals change dramatically in the days ahead.