Wed Apr 09 04:48:06 UTC 2025: ## Indian Markets Plunge Amidst Escalating US-China Trade War

**Mumbai, April 9, 2025** – Indian benchmark indices experienced a sharp decline in early trading today, mirroring losses in Asian markets and fueled by escalating trade tensions between the US and China. The BSE Sensex plummeted 554.02 points to 73,673.06, while the NSE Nifty fell 178.85 points to 22,357.

The dramatic drop follows the implementation of a 104% US tariff on Chinese goods, a move retaliatory to Beijing’s 34% tariffs on US imports. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, described the situation as “blood on the streets,” citing the immense uncertainty surrounding the global economic impact. However, he also noted that India’s robust domestic consumption and the anticipated 25 basis points rate cut by the Reserve Bank of India (RBI) could mitigate some of the negative effects. The decline in crude oil prices also presents a positive for the Indian economy.

Several Sensex companies, including Tata Steel, Tech Mahindra, and Infosys, experienced significant losses. Conversely, Power Grid, Nestle, and Hindustan Unilever saw gains. Asian markets also traded lower, with the Nikkei 225 index in Tokyo dropping 3.63%. US markets closed significantly lower on Tuesday.

Foreign Institutional Investors (FIIs) sold equities worth Rs 4,994.24 crore on Tuesday. Prashanth Tapse, Senior VP (Research) at Mehta Equities Limited, highlighted the heightened market volatility and the anticipation surrounding the RBI’s monetary policy announcement, which is expected to include a rate cut.

Brent crude oil prices fell 2.90% to $61 a barrel. This follows a strong rebound on Tuesday, where the Sensex gained 1,089.18 points and the Nifty rose 374.25 points. All eyes are now on the RBI’s decision and its potential impact on the Indian economy.

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