Stock Market Crash – April 7, 2025: Key Highlights and Reasons Behind the Massive Fall

The Indian stock market witnessed a massive selloff on Monday, April 7, 2025, as both Sensex and Nifty plunged sharply, in line with a global market meltdown. Here’s a quick summary of what happened and why the markets are bleeding:

🔻 What Happened?

• Sensex crashed over 3,100 points at the opening bell and is currently down over 2,600 points.
• Nifty fell below 22,000, losing more than 840 points.
• Over ₹19.4 lakh crore in investor wealth was wiped out as the BSE’s total market capitalization fell to ₹383.95 lakh crore.
• India VIX surged 55%, indicating extreme volatility.

📉 Which Sectors Got Hit the Most?

• Nifty Metal: -8%
• Nifty IT: -7%+
• Auto, Realty, Oil & Gas: Down more than 5%
• Mid-cap Index: -7.3%
• Small-cap Index: -10%

💥 Top Falling Stocks:

• Tata Motors: -10% after JLR halted US shipments
• Mazagon Dock: -13% due to govt stake sale
• Reliance Industries: Worst drop since June 2024
• Others: Trent (-14%), Kaveri Seed (-10.5%), Tata Steel (-8.9%)

🌍 Why Did the Market Fall?

1. Global Selloff: Asian markets plunged — Nikkei (-7%), Hang Seng (-10.5%), South Korea (-5%)
2. Nasdaq in Bear Market: U.S. tech-heavy index down over 20% from recent highs
3. Trump’s Tariffs: The U.S. imposed steep import tariffs, triggering global recession fears
4. Commodities Crash: Fears of reduced demand caused global commodity prices to fall
5. Recession Concerns > Inflation: Investors now fear a global recession more than inflation
6. Rupee Weakness: Rupee fell past 85/$ — record low

🔮 What to Watch Next?

• RBI Policy: 25 bps rate cut expected this week
• U.S. CPI Data: March data due soon — will give further inflation cues
• Tariff Talks: All eyes on how global trade tensions evolve

📌 Bottom Line: Today’s market crash is a result of a perfect storm — aggressive U.S. tariffs, rising recession fears, falling global stocks and commodities, and nervous investors rushing to sell. The road ahead remains volatile, with central banks under pressure to provide support.

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