As global trade tensions due to Donald Trump-imposed reciprocal tariffs rattled the stock market, investor wealth took a massive hit this April, with over ₹11.30 lakh crore erased from the Indian share market.
The BSE Sensex plunged nearly 2% since the beginning of the month reflecting widespread volatility triggered by fresh trade tariff war between the United States and China, PTI reported.
Since April 2, the BSE benchmark gauge has slumped 1,460.18 points or 1.90 percent.
Tracking uncertainty in equities, the market capitalization of BSE-listed firms tumbled by ₹11,30,627.09 crore to ₹4,01,67,468.51 crore (USD 4.66 trillion) during this period.
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However, the benchmark indices jumped nearly 2 percent on Friday as investors rejoiced when the White House later announced a 90-day pause on new import duties.
Meanwhile, markets remained closed on two occasions, on April 10 for Shri Mahavir Jayanti and April 14 due to Dr Baba Saheb Ambedkar Jayanti.
Turbulent start to the financial year
“Markets had a rocky start to the new fiscal year after Trump announced sweeping reciprocal tariffs on the world. Global markets witnessed sharp losses, and India also was not immune to the sell-off but fared relatively better so far,” Satish Chandra Aluri, Analyst at Lemonn Markets Desk, said.
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Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services, said that the Indian markets have indeed experienced turbulence in recent times, driven by a combination of domestic and global factors.
Tit for tat between US-China biggest concern now, say experts
Experts say the ongoing tit-for-tat tariff battle between the US and China is the biggest concern right now.
Trump unveiled a massive tariff plan in the first week of April. The White House later announced a 90-day pause on “reciprocal tariffs” for most countries except China, which in turn decided to impose 125 per cent tariffs on US imports.
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China on Friday upped its additional tariff on US goods to 125 per cent, retaliating America’s 145 per cent levy.
“Immediate challenge emanates from the global trade war with escalating tit-for-tat tariffs between the US and China. How the trade war evolves will be the key factor in determining the growth trajectory and market outlook for FY26,” Aluri added.
About the ongoing market uncertainty, Vishnu Kant Upadhyay said that it may last for another 3-6 months.
“But the present phase of uncertainty may last for another three to six months specifically because of fear of a US slowdown and recession that is stifling investor sentiment. Conversely, if global conditions stabilise, Indian equities may once again emerge as a desirable destination for foreign investors seeking long-term growth potential,” Upadhyay said.