Market Mayhem: ₹19.4 Lakh Cr Wealth Erased as Global Tariff Shock Hits Dalal Street

Synopsis : Markets witnessed a brutal sell-off as Sensex and Nifty plunged over 4%, reaching 9-month lows. Small and midcaps crumbled, wiping out ₹19.4 lakh crore in market wealth amid global tariff shocks.

In one of the steepest declines in recent months, Indian markets were painted in red as BSE Sensex and Nifty 50 nosedived over 4%, reacting sharply to the global tariff tremors triggered by U.S. President Donald Trump. Investors witnessed a ₹19.4 lakh crore erosion in market capitalisation, with the BSE's total valuation dropping to ₹383.95 lakh crore.

The Volatility Index (India VIX) surged more than 50%, signaling heightened panic. The selloff wasn't limited to blue-chip stocks — small-cap and mid-cap indices bled heavily, reflecting widespread carnage on Dalal Street.

Sectoral Collapse:

Nifty IT Index slumped 6%, while Nifty Metal Index crashed 7%.

Every sector ended in deep red — tech and metal stocks were among the worst hit.

Even defensive sectors like Pharma and FMCG couldn’t escape the bloodbath.

Globally, Japan’s Nikkei 225 and Topix indices plunged 7%, triggering circuit breakers and halting trade. Meanwhile, U.S. Futures dropped 1,500 points, and Wall Street extended its slide, with the S&P 500 erasing $5.4 trillion in value in just two sessions. The index sank 6%, marking its worst single-day fall since March 2020.

Oil prices slipped below $60 per barrel, while gold crashed to $3,037.79, showing that panic has gripped across asset classes.

What’s Driving the Panic?

1. Trump’s “Liberation Day” Tariff Blitz:

In an aggressive move, President Trump declared an across-the-board 10% tariff on all imports, targeting nations with large trade surpluses. Labeling it "Liberation Day," the move sparked fear across markets. China retaliated instantly, slapping 34% tariffs on all U.S. products.

2. Wall Street Meltdown:

The global selloff began with Wall Street’s crash. Major tech players like Tesla (-10%), Nvidia, and Apple (both over -7%) dragged the Nasdaq 100 into a bear market. The ripple effects reached Asia and India, causing panic selling.

3. India’s Diplomatic Dilemma:

Unlike China’s hard retaliation, India is reportedly treading cautiously. According to sources, countries like Japan, Mexico, South Korea, and India are seeking exemptions or softer trade terms rather than direct retaliation — a strategy that might reduce immediate tensions but won’t calm market nerves.

Disclaimer : This article is for informational purposes only and not intended as financial advice. Always consult with a certified financial advisor before making any investment decisions.