Mon Apr 07 04:47:49 UTC 2025: ## Global Trade War Sends Shockwaves Through Indian Markets

**Mumbai, April 7, 2025** – A global trade war triggered by US reciprocal tariffs and China’s retaliatory measures sent shockwaves through Indian markets on Monday. The rupee weakened by 19 paise against the US dollar, reaching 85.63, despite a decline in crude oil prices and a weaker American currency. Foreign institutional investors (FIIs) continued their sell-off, offloading equities worth ₹3,483.98 crore on Friday.

The escalating trade tensions, coupled with concerns over the Reserve Bank of India’s (RBI) upcoming interest rate decision (due Wednesday), fueled market uncertainty. Analysts attributed the weakening dollar to disappointing services PMI data and fears of inflation and economic slowdown. Brent crude fell 2.73% to $63.79 per barrel.

India’s domestic equity markets also suffered significant losses. The BSE Sensex plummeted 3014.32 points (4%), closing at 72,350.37, while the Nifty tanked 1,016.75 points (4.44%), ending at 21,887.70.

Despite these negative trends, India’s forex reserves increased for the fourth consecutive week, reaching $665.396 billion as of March 28. A recent survey indicated a slight easing in India’s services sector activity in March. The RBI’s monetary policy committee is currently deliberating on key interest rates.

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