Global Markets in Freefall: Economic Turmoil Ensues

The global stock markets nosedived amid US-China trade tensions and tariffs. Sensex and Nifty dropped over 5%, reflecting a broader global downturn. Economic policies by leaders like Narendra Modi and Donald Trump are criticized for self-inflicted economic wounds, leading to unpredictable market reactions.

The global stock market experienced a significant decline on Monday as heightened trade tensions between the United States and China rattled investors' nerves. The sharp fall was attributed to recent tariff hikes by President Donald Trump and retaliatory actions by China, which have sparked fears of a damaging trade war affecting economic growth worldwide.

India's major indices, the Sensex and the Nifty, both crashed more than 5%. All Sensex firms, including Tata Steel and Tata Motors, saw their shares tumble significantly. The political fallout was immediate, with Congress criticizing Prime Minister Narendra Modi for contributing to economic instability alongside Trump through policies that have led to what they term as 'self-inflicted wounds.'

Globally, the impact was felt across various markets in Asia, with indices like Hong Kong's Hang Seng, Tokyo's Nikkei, and Shanghai's SSE Composite all plunging. The U.S. markets too saw significant losses, underlining the widespread concerns over the escalating economic confrontation between two of the world's largest economies.

(With inputs from agencies.)