Overview

• The Sensex and Nifty indices fell over 5% on April 7, 2025, marking one of the steepest single-day declines in recent years.
• The crash was spurred by heightened US-China trade tensions after new tariffs were announced by US President Donald Trump, followed by retaliatory measures from China.
• Investor wealth worth ₹14 lakh crore was wiped out in a single day, with significant losses across all major sectors, particularly IT stocks reliant on US revenue.
• The sell-off extended globally, with major Asian indices like Hong Kong's Hang Seng and Tokyo's Nikkei experiencing sharp declines of 7% or more.
• Analysts warn of extreme market uncertainty, suggesting future stability hinges on the outcome of US-China trade negotiations.