Black Monday: Stock markets crumble amid global trade war

Bombay Stock Exchange (BSE) building, in Mumbai. Pics/PTI

Stock markets crumbled on Monday with benchmark Sensex sinking by 2,226.79 points ‘is steepest single-day decline in 10 months' as a global market carnage following US President Donald Trump's tariff hikes and retaliation from China fanned fears of economic slowdown. Investors' wealth eroded sharply by Rs 20.16 lakh crore on Monday morning as the benchmark indices faced heavy drubbing, with the Sensex dropping over 5 per cent, amid a global market meltdown due to growing trade war concerns.

The 30-share BSE Sensex crashed 2,226.79 points or 2.95 per cent to settle at 73,137.90, recording its third day of decline. During the day, the index slumped 3,939.68 points or 5.22 per cent to 71,425.01. The NSE Nifty tumbled 742.85 points or 3.24 per cent to settle at 22,161.60. Intra-day, the benchmark dropped 1,160.8 points or 5.06 per cent to 21,743.65. All Sensex shares, except for Hindustan Unilever, ended with losses. Tata Steel fell the most by 7.33 per cent followed by Larsen & Toubro which cracked 5.78 per cent.

Sensex, on Monday

In Asian markets, Hong Kong's Hang Seng index tanked more than 13 per cent, Tokyo's Nikkei 225 plunged nearly 8 per cent, Shanghai SSE Composite index dropped over 7 per cent and South Korea's Kospi sank over 5 per cent. European markets too came under heavy selling pressure and were trading with up to 6 per cent decline.

US markets ended sharply lower on Friday. The S&P 500 dropped 5.97 per cent, Nasdaq composite slumped 5.82 per cent and the Dow tumbled 5.50 per cent on Friday. On Monday, the BSE smallcap gauge cracked 4.13 per cent, and the midcap index tanked 3.46 per cent. All BSE sectoral indices ended with deep cuts. Global oil benchmark Brent crude dropped 3.61 per cent to $63.21 a barrel.

The commerce ministry is stepping up efforts to help exporters explore new markets to push outbound shipments while also setting up a working group to monitor possible surge in imports from countries like China to tackle the impact of sweeping tariffs announced by the US, source said. The ministry is also fast-tracking formulation of its export promotion mission to support exporters in areas such as providing credit at affordable rates; and negotiations of proposed free trade agreements with the European Union, Oman, New Zealand and the UK.

Rupee falls 38 paise

The rupee declined 38 paise to settle at 85.82 (provisional) against the US dollar on Monday. A steep decline in crude prices and a weaker American currency failed to arrest the fall in domestic currency due to the withdrawal rush by foreign as well as domestic equity investors, forex traders said.

They said the currency exchange markets globally faced extreme volatility as investors tried to escape risks, following the US administration's sweeping reciprocal tariffs on multiple countries and China's retaliatory move on the American imports. On the domestic macroeconomic front, market participants were watchful as the Reserve Bank of India's (RBI's) monetary policy committee began its three-day deliberations on key interest rates.

Govt hikes excise on petrol, diesel; LPG price hiked by Rs 50

The government on Monday hiked excise duty on petrol and diesel by Rs 2 per litre each but there will be no change in retail prices. The excise duty on petrol was hiked to Rs 13 per litre and that on diesel to Rs 10 a litre which will come into force on the April 8, 2025. India is 85 per cent dependent on imports to meet its oil needs. Petrol currently costs Rs 94.77 a lire in Delhi and Rs 87.67 is the price for a litre of diesel. The government also hiked the cooking gas price by a steep R50 per cylinder. The increase in cooking gas price - for all users - will come into effect from April 8,. Cooking gas for Ujjawala users will cost R553 per 14.2-kg cylinder from the current Rs 503 in the national capital. The same for general users will now cost Rs 853.

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