Dalal Street witnessed a dramatic selloff on April 7, sending shockwaves through the financial markets as investor sentiment soured amid fears of a global trade crisis. The immediate trigger? A sharp selloff in the US after former President Donald Trump’s proposed tariffs rekindled fears of a worldwide trade war.
The fallout was swift and severe. By 2:50 PM, the Sensex had crashed 2,707 points (3.59%) to 72,656.86, while the Nifty dropped 884 points (3.86%) to 22,020.20. This marked the worst single-day drop since June 2024. Market breadth was sharply negative, with over 3,299 stocks declining and just 327 gaining.
Analysts attributed the rout to growing concerns over retaliatory tariffs from countries like China, the EU, and Canada, which threaten to derail global trade and push economies toward recession.
Siddhartha Khemka, Head of Research at Motilal Oswal, emphasized the need for investors to avoid knee-jerk reactions. He encouraged a calm, long-term approach, highlighting opportunities in consumption, financials, and banking sectors, which are less exposed to global turbulence. According to him, India’s domestic consumption story remains a reliable long-term theme, even if short-term returns appear modest.
Meanwhile, crude-sensitive sectors such as oil marketing firms and airlines could benefit from declining oil prices, offering some relief.
The sectoral breakdown revealed widespread losses. Nifty Metal plunged over 7%, with heavyweights like Tata Steel, JSW Steel, and Hindalco leading the slide. Realty, auto, banking, IT, infra, and pharma sectors also lost ground, falling 3-4% each. Broader markets weren’t spared either, with mid-cap and small-cap indices down more than 4%.
In corporate news, Tata Motors tumbled over 8% after Jaguar Land Rover announced it would suspend US-bound shipments for April to assess the impact of fresh US tariffs. This move fueled concerns about the broader auto sector’s exposure to global trade disruptions.
Siemens India also experienced a massive drop of over 50% after its stock turned ex-demerger. Following the split with Siemens Energy India on a 1:1 basis, the share opened at ₹2,450, recovering slightly to ₹2,836.75.
On the technical side, Axis Securities issued cautionary guidance. For Nifty, it pegged the critical resistance at 22,992. If the index trades below this, further downside toward 22,412 is possible. Similarly, Bank Nifty’s key level was placed at 51,586, with potential corrections to 50,744 if it trades lower.
Notably, Hindustan Unilever stood out as the lone gainer among the Nifty constituents. Major laggards included Trent, L&T, JSW Steel, Hindalco, and Tata Steel.
As uncertainty looms large, market participants are bracing for more volatility, with defensive strategies and a focus on domestic resilience emerging as the need of the hour.
