Mon Oct 13 04:00:00 UTC 2025: Here’s a news article summarizing the Dalal Street dip and the contributing factors:

**Dalal Street Shaken by Trade War Fears, Sensex Plunges**

**Mumbai, India -** Indian stock markets opened the week on a shaky note, with the Sensex plummeting nearly 400 points and the Nifty dropping below 25,200 in early trade on Monday. The downturn mirrors a global sell-off fueled by renewed anxieties surrounding a potential trade war between the United States and China.

The catalyst for the market jitters was President Trump’s initial announcement of a 100% tariff on all Chinese goods, scheduled to take effect on November 1st. While the President later softened his stance, stating the US doesn’t want to “hurt” China, investors remain wary of escalating trade tensions.

Across Asia, markets reacted negatively, and India was not immune. Contributing factors to the Indian market’s slide included profit booking after gains made last week, as well as cautious sentiment ahead of key domestic events, such as the Tata Capital listing, upcoming Q2 earnings reports, and the release of inflation data.

Within the Nifty50, only a handful of stocks like Indigo and Max Health managed to buck the trend, while ONGC, Tata Motors, and Adani Enterprises suffered significant losses.

“We begin the week with upside capped near 25,460,” noted Anand James, Chief Market Strategist at Geojit Financial Services. “Volatility is likely to rise as the week progresses.”

Experts suggest the market is currently pricing in uncertainty. “Even though Trump softened his tone later, the fear of another trade war has spooked investors,” said Ponmudi R, CEO of Enrich Money. However, he added that underlying factors like Q2 earnings, inflation data, and a strong IPO pipeline could drive sentiment in the longer term. The continued robust investor demand for recent IPOs indicates healthy domestic liquidity and retail participation.

Some analysts believe the panic might be temporary. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, characterized the situation as “just another round of sabre-rattling” between the world’s two largest economies. He highlighted the continued investment from Foreign Institutional Investors (FIIs), who have bought equities worth over 3,200 crore in the past four sessions, providing resilience to Indian markets.

In conclusion, today’s stock market decline is attributed to a combination of global trade war fears and profit-taking. While market fundamentals remain relatively strong, traders are exhibiting increased nervousness. Investors are advised to remain cautious but to also consider the potential for market rebound, given the upcoming economic data releases and a robust pipeline of IPOs.

**(Disclaimer: Investment in the market is subject to risk, consult your financial advisor before investing.)**

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