Indian Shares Plunge Amid Escalating Global Trade Tensions

On April 7, 2025, Indian stock markets experienced significant losses amid mounting global trade tensions and fears of a U.S. recession. The Nifty 50 fell by 4.03% to 21,982.05 and the BSE Sensex dropped 3.86% to 72,455.5 – the steepest intraday declines since March 2020. The markets opened down around 5% following President Donald Trump’s announcement of sweeping reciprocal tariffs, which have further intensified the trade war and economic uncertainty.

Additional market pressures were seen across Asia. Major indices including Japan’s Nikkei 225 and the MSCI Asia ex-Japan index tumbled, exacerbated by related moves in the automotive sector—where Tata Motors shares slid by 10% after its luxury arm, Jaguar Land Rover, halted exports to the U.S. due to a new 25% tariff. Investor anxiety spiked, as reflected by a 57% jump in the Nifty volatility index, while concerns over muted Q4 earnings and potential downward pressure on FY2026 GDP growth persisted despite assurances from government officials on the nation’s growth targets.