Indian Stock Markets Crashes: Rs 20 Lakh Crore Lost in 10 Seconds After Trump Tariffs

US President Donald Trump’s aggressive new tariff policy has sent shockwaves through global markets — and Indian investors are feeling the heat. In one of the steepest plunges in recent memory, Indian stock markets opened sharply lower on Monday, with the Sensex nosediving nearly 4,000 points and the Nifty shedding over 1,000 points in early trade.

The dramatic crash wiped out more than ₹20 lakh crore in investor wealth in a matter of minutes, pushing the markets to their lowest levels in 10 months.

The sell-off wasn’t limited to India. Asian markets were already reeling after overnight announcements from Washington sparked panic among global investors. US stock futures also pointed to a grim session ahead, suggesting the worst might not be over yet.

At the heart of the turmoil are Trump’s newly announced tariffs, which the White House has billed as a much-needed correction to what it sees as decades of unfair trade. The tariffs — some of which are as high as 50% — are country-specific, with India facing a hefty 26% rate. On top of that, a blanket 10% duty has been slapped on imports from all nations.

For Indian exporters and global traders alike, the news has sparked fresh fears of a protracted trade war, one that could severely disrupt international supply chains and put pressure on emerging market economies already walking a tightrope.

In an interview with reporters this morning, a defiant Trump appeared unmoved by the carnage in international markets, comparing his tariffs to a medicine that is necessary to “fix something”.

Indian Stocks Markets Drop 3.5%

When trading resumed at 9 am following the weekend vacations, the Sensex plummeted 3, 939.68 points to 71,425.01 in early trading. During this time, the Nifty fell 1,160.8 points to 21,743.65. At noon, the National Stock Exchange index, the Nifty, fell below the 22,000 mark, while the Sensex, which is a collection of the top 30 Indian corporations listed on the Bombay Stock Exchange, was down more than 3,000 points.

This morning, the rupee opened lower as well, down 30 paise to 85.74 against the US dollar.

Experts indicate that Trump’s tariffs were likely to instill concerns in Indian stock markets, highlighting the urgent need for financial reforms in the country to safeguard its domestic economy amid the ongoing global trade conflict.

“India will face the heat, not due to domestic reasons, but as an interlinked chain in the global portfolio flows. India will need a fiscal, monetary, and reform package to protect the domestic economy from this global economic winter that is threatening to settle in,” Ajay Bagga, a market expert, told ANI.

The Nifty50 has broken through the first support level and is approaching the second, according to Sunil Gurjar, a research analyst registered with SEBI, who stated that a further collapse would simply prolong the downward trend.

Global Equities

The ripple effects of US President Donald Trump’s sweeping tariffs are being felt most sharply in Asia, where equity markets opened to widespread panic and heavy losses on Monday.

Asia, being the first region to respond to the tariff shock, saw its major stock exchanges plunge into deep red. China led the downturn, with markets falling over 4% as investors reacted to a fresh round of tit-for-tat tariffs — Beijing retaliated with a steep 34% levy on US goods, intensifying fears of an all-out trade war.

Hong Kong’s Hang Seng index took an even bigger hit, nosediving more than 10% as sentiment soured across the region. Japan’s Nikkei also faced a brutal session, initially crashing over 8% before paring losses slightly to trade down around 6.5%.

In Taiwan, the sell-off was even more dramatic — its main index tumbled nearly 10%, while Singapore’s bourse wasn’t far behind with losses exceeding 8%.

The sell-off marks one of the worst trading days in recent years for Asian equities, underlining how deeply interconnected and fragile the global economic landscape has become in the face of unilateral trade action by the US.

The tremors from President Trump’s tariff blitz aren’t stopping in Asia — Wall Street is preparing for a rough ride too. Futures contracts on the New York Stock Exchange plunged sharply ahead of Monday’s opening bell, pointing to heavy losses once US markets begin trading.

But it’s not just the immediate sell-off that’s rattling nerves. Trump’s trade strategy is sparking deeper concerns — with fears of a looming global recession now gaining serious traction among analysts and investors alike.

Stephen Innes of SPI Asset Management didn’t mince words. “The market is in free-fall mode again, punching through floors,” he said. “Trump’s team isn’t blinking. The tariffs are being treated as a victory lap, not a bargaining chip.”

That defiant stance — paired with escalating tit-for-tat tariffs — has left global markets on edge. With each new announcement, the sense grows that this is no longer just a negotiating tactic, but a fundamental shift in US trade policy that could send shockwaves through the global economy.