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Copyright © HT Digital Streams Limit all rights reserved. Markets Dipti Sharma 6 min Read 07 Apr 2025, 10:26 pm Ist Dalal Street was witness to the worst opening since March 2020, which was the beginning of a months -long pandemic lock in India. (Mint) Summary of all sectoral indices of BSE has fallen. Middle cap and small cap indexes performed worse than benchmarks. The anxiety index of the market increased by 53%. Mumbai: Shock waves from Washington kicked Tokyo shares to London on Monday and wiped out nearly £ 14 billion of India’s investors, while the world panicked over the unfolding tariff war, which led to a full slowdown. Dalal Street has been a witness to the worst opening since March 2020, which was the beginning of a months-long pandemic in India. After a 5% opening opening, the Nifty and Sensex traded in the red on Monday before setting 3% lower, their worst performance since June 4, 2024. There was no place to hide: all sectoral indexes of BSE fell. The damage was also not limited to the front lines. The NSE’s mid-cap and small cap indexes have dropped a sharper 4%, illustrating the pain in the wider market. On the NSE where more than 3,000 companies are listed, a staggering 645 low of 52 weeks hit. For each stock that came up, eight fell. The market index of the market rose by more than 65% during the session before closing 53% higher. See also: Decoding of today’s market accident in maps: Hard truths and signs of resilience “The last few days’ fall in the market certainly gives one flashbacks of Covid days,” says Nilesh Shah, managing director, Kotak Mahindra AMC. However, he pointed out that Indian markets did not respond as sharply as some of the other markets, including the US. Global Markets Asian Markets has crattered, with Hong Kong’s Hang Seng index falling 13%, and this is the worst since the Asian financial crisis almost three decades ago. This was followed by Taiwan’s Taiex, which fell by 10%, Japan’s Nikkei (8%), the mainland of China’s CSI 300 (7%) and the Kospi of South Korea (6%), and painted a picture of widespread panic in the entire region. The Nifty ended the session by 3.2% lower at 22,161,60, while the Sensex fell 2.9% to 73,137,90. In Europe, the Euro Stoxx 50, which represents top blue-chip businesses in 11 countries in the eurozone, fell by 4%. Meanwhile, the US Dow futures have dropped nearly 700 points, suggesting that the pain is not over yet. Investors remembered Black Monday – October 19, 1987, when the Dow Jones industrial average in a single session dropped about 23%, causing a global collapse. Unlike 1987, when India was protected by the limited global exposure, it is no longer on the sidelines. Although the Indian economy is not very export-oriented, it is also not fully isolated, says Hari Shyamsunder, Vice President and Senior Institutional Portfolio Manager, Emerging Markets Equity, India, in Franklin Templeton. “It remains exposed to second-order effects of a possible global growth and increased geopolitical tension.” Read also | The fear meters of the stock market point to a refusal, and not a lower Shaymsunder explained that if rates are implemented and sustained, it can lead to higher prices for US consumers, can disrupt the global supply chains and weigh on corporate capital expenditure. A global growth in growth, a weaker investment cycle, increasing trading tension and a broader risk sentiment in equities, will harm Indian stocks, he added. For India, exports form about 21.4% of GDP in FY24. The rupee dropped 60 paise or 0.7% to 85,8350 per dollar, its worst drop of one day since January 13. Most Asian currencies rose lower and fell 0.2-1.2% against the dollar amid broad market pressure. For Nifty, the 21,800 mark is the next important level to look at, says Kunal Parar, Vice President at Choice Equity Broking. “If the index manages to keep this level over the next two sessions, the market could possibly get some feet. But a offense could open the flood gates for a sharper correction,” he warned. According to Kotak’s Shah, according to Kotak’s Shah, Expers can also be a reason why Indian stocks did not respond as negatively as others, as current valuations are reasonable. Read also | Mint explanator: What Trump’s tariff shock means in Indian markets to investors Bloomberg data showed that the valuations of the Indian market have fallen below the long-term average. The Nifty 50s p/e ratio is now 18.1x and the Sensex at 19.49x, both among their 20-year averages of 20,83x and 19.68x, indicating that markets may be against common sense. Some investors may be tempted to pull out shares amid increasing uncertainty, but Swarup Anand Mohanty, vice -chairman and CEO of Mirae Asset Investment Managers (India), considers it an opportunity to lean and not withdraw. While India’s market has retained better than others, bags of overpowering remain, and any bad news can cause a sale, Mohanty said. Still, he recommends not reading the dive. Despite the sharp fall, Indian stocks are not yet a bargain, but Mohanty believes India is close. He considers 2025 a year to build up, and not returns. BSE data showed that FIIs dropped the Indian shares worth £ 9,040 crore on Monday, while these with net purchases of £ 12.122 crore, which gave some pillow to the sale. Read also | Will lower rates attract FPIs from other emerging markets? “India remains a growth story in a world full of crises,” Mohanty said, and the addition of currency stability is the key for foreign investors to return. He believes this is the moment for domestic investors to step up-as the market is back into the market, the early profits can already be off the table. Shah believes that investors will use this phase to rebalance portfolios and increase stock awards, with flow that is likely to perform in the coming weeks. “We would also expect more money to be allocated to fairness in the coming months, as the current volatility establishes and the contours of bilateral trade agreements between us and other countries become clearer,” he said. Dinesh Thakkar, chairman and managing director of Angel One, said that phones at his firm “buzz” with retail investors who inquire about whether it was the right time to “buy”, but Mira Money, a South-based distributor of mutual funds, claimed that significant redemption by investment , happened Monday’s accident. Direct plans enable an investor to invest directly in the units of a mutual fund without an intermediary, which reduces transaction costs. It is offered by online brokers at new age. By contrast, investors invest in regular plans by a distributor, broker or banker, who get a distribution fee of the AMC. In addition, retail investors who borrow from brokers to invest directly in stocks faced Monday’s margin calls. Investor focus will soon move to the Comments of the Reserve Bank of India in the upcoming monetary policy meeting. In addition, the earnings season in March will be another important trigger on the radar. Attention will also look at the US Federal Reserve, which will hold a closed door meeting on Monday morning, which raises speculation about the next step of the central bank amid Rising Global Jitters. If the Fed continues with a rate cut and US markets in the green, there is a good chance that Indian markets could see a setback on Tuesday. (Input from Ram Sahgal and Srushti Vaidya) captures all the business news, market news, news reports and latest news updates on Live Mint. 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