Stock market crash today: It’s a bloodbath! for Indian Stock Market
The Indian stock market experienced a significant crash on April 7, 2025, with both the BSE Sensex and NSE Nifty plummeting over 4% in early trade.
Indices Performance: The BSE Sensex fell nearly 4,000 points, while the Nifty 50 slipped below 21,750, marking one of the largest single-day declines since June 2024.
Sectoral Impact: All major sectors were in the red, with Nifty Metal plunging 8% and Nifty IT falling over 7%. Other sectors like Auto, Realty, and Oil & Gas also saw sharp declines of over 5% each.
Market Capitalization Loss: The market capitalization of BSE-listed companies dropped by nearly Rs 19.4 lakh crore to Rs 383.95 lakh crore.
Top Losers: Tata Steel led the decline with a drop of over 10%, followed by Tata Motors, Infosys, Tech Mahindra, and L&T.
Causes of the Crash
Global Trade Tensions: The crash was triggered by fears of a recession in the US, exacerbated by US President Donald Trump’s announcement of sweeping tariffs, which sparked a global trade war and heightened economic uncertainty.
Nasdaq Enters Bear Market: The Nasdaq index officially entered a bear market, further contributing to global market volatility.
Impact on Investors
Wealth Erosion: Investors’ wealth eroded sharply by over Rs 20 lakh crore in morning trade as the benchmark indices faced heavy drubbing.
Volatility Increase: The India VIX, the Volatility Index, shot up by over 56%, reflecting heightened market uncertainty.
