India’s benchmark indices plunged on Monday, posting their steepest single-day losses since June 2024, as a wave of global risk aversion triggered by fresh U.S. tariffs rattled markets.
The Nifty 50 sank 3.24% to 22,161.1, while the BSE Sensex slumped 2.95% to 73,137.9. Both indices recorded their worst session in 10 months, mirroring sharp declines across global equities.
The MSCI Asia ex-Japan index tumbled 8.3%, while Japan’s Nikkei 225 shed 7.8%. In Europe, Germany’s DAX dropped 5.3% and the UK’s FTSE 100 fell 4.1%.
The selloff followed comments from U.S. Federal Reserve Chair Jerome Powell, who warned that new tariffs imposed by former President Donald Trump were “larger than expected” and could threaten growth and stoke inflation.
U.S. markets braced for further declines, with S&P 500 and Nasdaq futures down nearly 5% and 5.7%, respectively, after last week’s $6 trillion wipeout.
India’s volatility index surged 66% to 22.79 — its sharpest single-session spike in a decade and the highest level since June 2024.
“The sell-off on Monday is sentiment-driven, exacerbated by fears of a prolonged trade war and global liquidity tightening,” said Abhishek Jaiswal, fund manager at Finavenue.
IT and export-focused sectors bore the brunt, with the Nifty IT index down 2.5% amid expectations that trade tensions could delay discretionary spending. Metals plunged 6.75%, and financials dropped 3.5%.
Heavyweights HDFC Bank, ICICI Bank, and Reliance Industries — which collectively hold 32% weight in the Nifty 50 — lost around 3.5% each.
Broader markets fared no better, with small- and mid-cap indices sliding 3.9% and 3.6%, respectively — their worst day in nearly three months.
Among individual stocks, Trent plunged 15% on weak revenue guidance, while Tata Motors fell 5.6% after its Jaguar Land Rover unit paused exports to the U.S.
Despite the rout, government officials maintained that India’s growth outlook for FY26 remains unchanged. However, several brokerages warned that elevated volatility and slowing foreign demand could weigh on future GDP estimates.
