The Black Monday Indian stock market crash hit Dalal Street with major declines in Nifty 50 and Sensex during the early hours of April 7. The market reaction to U.S.-China trade tensions caused investors to rapidly exit their equity positions. The market opened with Nifty 50 dropping more than 1,100 points while Sensex plummeted 5% in a manner similar to past pandemic-related market crashes.
HDFC Bank together with Reliance Industries ICICI Bank Infosys and L&T formed the top contributors to the Nifty’s 37% decline during mid-morning trading. HDFC Bank suffered an 88-point decline while Reliance lost 85 points.
The Nifty Smallcap 100 experienced a greater than 10% decline as the Black Monday Indian stock market crash affected all market capitalization segments. The Nifty IT sector declined by 7% because of U.S. recession concerns while metal stocks fell due to international base metal price decreases.
The market bloodbath occurred shortly after Donald Trump introduced his extensive tariff program which triggered corresponding actions from other nations. The Chinese government imposed 34% tariffs which intensified worries about an extended worldwide economic slowdown.
The Black Monday Indian stock market crash has raised new doubts about 2025’s outlook because consumer spending declined while global growth forecasts were reduced.
