India’s stock market suffered a brutal opening on Monday, with benchmark indices plunging over 5% as panic over an escalating global trade war rattled investor sentiment. This comes amid a sharp 50.93% spike in the CBOE Volatility Index (VIX), which soared to 45.31 — its highest level in years — signaling heightened market fear.
At 9:17 AM IST, the BSE Sensex nosedived 3,068.18 points, or 4.07%, to 72,296.51, while the NSE Nifty 50 dropped 1,146.05 points, or 5%, to 21,758.40. These levels were last seen in June 2024.
The sell-off was broad-based, with the BSE Midcap index down over 4% and the Smallcap index crashing 5.6%. Key sectoral indices, including auto, IT, metal, and oil & gas, were deep in the red. Tata Motors, M&M, Hindalco, Infosys, and Tata Steel led the declines, with several stocks hitting lower circuits in early trade.
The crash follows the market carnage on Wall Street last week, where the Dow Jones fell more than 2,200 points, the Nasdaq dropped 5.8%, and the S&P 500 shed 6% after President Trump’s sweeping tariffs triggered retaliation from China. Global equities echoed the panic, with Japan’s Nikkei losing nearly 9%, Hong Kong’s Hang Seng down over 10%, and Taiwan, South Korea, and Australia also witnessing sharp declines.
Adding to the pressure, Foreign Portfolio Investors (FPIs) have pulled out ₹10,355 crore from Indian equities between April 1 and April 4, 2025, further intensifying the downturn.
With VIX hitting a peak of 45.31, its highest reading since the early COVID-19 crisis, traders are bracing for more volatility ahead.
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