Nifty 50 and Sensex saw a sharp decline, both dropping over 5% amid a global market sell-off. Experts call for a reform package to stabilize the markets following Trump's tariff announcements.
The Indian stock markets opened with a significant drop. The Nifty 50 index initially fell by 5 percent, marking one of the largest declines since the Covid-19 pandemic, and started at 21,758.40 points, down by 1,146.05 points or 5 percent. Similarly, the BSE Sensex dropped by 5.29 percent to 71,379.8 points, a decrease of 3,984.80 points or 5.29 percent. Experts indicated that in light of Trump's announcements, the markets require a government reform package to manage this global sell-off.
Banking and market expert Ajay Bagga said, "Drawing lessons from the two-day decline of USD 5.4 trillion in the US markets, we are observing extraordinary sales in Asian markets. Taiwan, which was closed on Thursday and Friday, experienced a 20 percent drop, while Hong Kong saw a 10 percent decrease followed by some recovery. Experts suggest that the Trump administration needs to reverse the economic situation or delay reciprocal tariffs. However, officials from the Trump administration have indicated that they believe the tariffs will stay in place for the next few weeks or months".
Australia's benchmark index, the S&P/ASX 200, also fell by 3.82 percent, showing that the sell-off was not confined to major manufacturing economies but extended throughout the Asia-Pacific region.
Trump's tariff announcement also affected the US markets. The Dow Jones Industrial Average dropped by 2.22 percent in futures, indicating a negative opening for US markets. Meanwhile, Brent crude, the global benchmark, reached a 52-week low, trading at USD 63.97 at the time of this report.