Market Bloodbath: ₹8.5 Lakh Crore Wiped Out as Trump Tariff Fears Hammer Sensex

Indian markets faced a brutal sell-off today, with the Sensex plunging 1,050 points (1.4%) and Nifty50 dropping 1.2% as fears of US tariff hikes under a potential Trump presidency triggered panic across sectors. The total market cap erosion hit a staggering ₹8.5 lakh crore, marking the worst single-day loss of 2025.

📉 Sectoral Carnage

Worst-Performing Sectors

• IT (-3.1%): TCS shed 4.2%, Infosys 3.8%—US clients fuel 60% of their cash.
• Pharma (-2.7%): Sun Pharma down 3.5%, Dr Reddy’s 2.9%—despite tariff exemptions, nerves frayed.
• Metals (-2.4%): Tata Steel off 3.1%, Hindalco 2.7%—steel export woes loom.

Why These Sectors?

• IT: Trump’s 26% reciprocal tariff (April 2, BBC) threatens $87 billion in US exports (NASSCOM).
• Pharma: 40% of US generics come from India—exempt for now, but recession fears bite (Pharmexcil).
• Metals: 25% steel tariff talk rattles $3 billion in US shipments (Economic Times).

💣 What Triggered the Crash?

1. Trump’s Tariff Bomb:
   • Floated 60% import tax in campaign (BBC, March 12)—26% hit India April 2 (LiveMint).
   • Jeopardizes $200 billion in Indo-US trade—IT, pharma, autos in the line of fire.
2. Recession Jitters:
   • Morgan Stanley slashes India’s 2025 GDP to 6.1% from 6.5%—tariff fallout (Moneycontrol).
   • FIIs yanked ₹12,500 crore in three days—selling streak since April 1 (NSDL).
3. Global Ripple:
   • Dow Jones tanked 1.8% overnight—Nasdaq futures off 3.3% (Moneycontrol).
   • Shanghai Composite slid 2.3%—Asia’s bleeding red (LiveMint).

🛑 Key Support Levels Broken

• Sensex: Crashed below 76,000—April 3 close was 76,295 (LiveMint); 75,245’s new low.
• Nifty: Busted 23,100—closed 23,250 Thursday, now teeters at 23,000 (Economic Times).

💡 Expert Takeaways

Brokerage Warnings

• Morgan Stanley: “Steer clear of IT till US election dust settles—recession risk up.”
• Jefferies: “Metals won’t bounce before Q3—tariff drag’s too heavy.”

Retail Investor Advice

• Hold Tight: Don’t dump blue chips—HDFC, Reliance still have legs.
• Gold Play: Tuck 10-15% into gold—₹91,790/10gm Thursday (India TV) looks safer.
• RBI Watch: Rate cuts or rupee props could signal a floor.

What’s Next?

• US Jobs Data (April 5): Weak numbers could spike Fed rate fears—gold’s already at $3,121/oz (India TV).
• FII Moves: More selling could drag Nifty to 22,800—X posts scream panic (@moneycontrolcom).

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