Global Market Shock: Trump's Tariffs Rattle Indian Stocks

Indian stock markets opened lower on Monday as US President Donald Trump's tariffs on China, Canada, and Mexico caused global market volatility. The BSE Sensex and Nifty indices fell sharply. Experts warn of a 'doom loop' for global economies, urging safe-haven investments amid this turmoil.

In a ripple effect from US President Donald Trump's tariff announcement, Indian stock markets took a significant hit in early trading on Monday. The tariffs, though not directly targeting India, spurred global market volatility, impacting Indian indices. The Nifty index fell 0.9% to 23,271.35, while the BSE Sensex dropped 600 points to 76,910, marking a 0.8% decline.

Experts have attributed this downturn to a broader global reaction, with Ajay Bagga, a banking and market expert, characterizing the situation as a 'doom loop' for economies worldwide. He advised investors to consider safe-haven assets like gold, the Swiss franc, and the Japanese yen. The tariffs introduced by Trump include a 25% charge on imports from Canada and Mexico and a 10% tariff on Chinese goods, sparking concerns about a wider economic impact.

Sectoral indices showed widespread selling pressure, with Nifty IT experiencing the largest dip of over 1%, followed by Nifty Metal and Nifty Bank. However, Maruti Suzuki and Eicher Motors bucked the trend, emerging as top gainers. Amid this backdrop, several major companies, including Power Grid Corporation of India and Divis Laboratories, are set to reveal their third-quarter financial results. Meanwhile, Asian markets echoed the bearish sentiment, with significant declines in Taiwan, South Korea, and Japan.

(With inputs from agencies.)