Investors were in for a rough ride today as Indian equities nosedived, mirroring global jitters over former U.S. President Donald Trump’s renewed push for aggressive tariffs. The Sensex tanked over 700 points (1.7%) to close at 52,300, while the Nifty50 plummeted 215 points (1.3%) to 15,650, marking one of the worst single-day drops in months. The sell-off was broad-based, with auto, IT, and metal stocks bearing the brunt of the panic.
Why the Panic ?
Markets were blindsided by Trump’s latest comments hinting at a return to protectionist trade policies if he wins the 2024 U.S. presidential election. In a weekend interview, Trump doubled down on his “America First” stance, vowing to slap steep tariffs on Chinese imports and potentially target other trading partners, including India. Investors fear a replay of the 2018-2019 trade wars, which disrupted global supply chains, spiked inflation, and hammered export-reliant sectors.
Sectors in the Crosshairs
Auto stocks skidded as Tata Motors, Mahindra & Mahindra, and Maruti fell 3-5% on fears of retaliatory tariffs impacting India’s auto component exports. IT giants like TCS and Infosys dropped 2-3% amid concerns over stricter visa rules and reduced tech spending if U.S.-China tensions escalate. Pharma stocks, however, showed some resilience as investors bet on domestic demand.
Global Domino Effect
The anxiety wasn’t confined to India. Asian markets, including Japan’s Nikkei and Hong Kong’s Hang Seng, tumbled 1-2%, while European indices opened lower. U.S. futures pointed to a weak Wall Street start, with tech stocks like Apple and Tesla under pressure.
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