On April 7, Indian stock markets witnessed one of their most severe single-day falls in recent times. The Nifty 50 and Sensex crashed by nearly 3%, erasing massive investor wealth, all due to fears surrounding a potential global economic slowdown triggered by an ongoing tariff war.
The Sensex closed 2,226.8 points lower at 73,137.9, while the Nifty 50 fell 742.9 points to 22,161.6. This marks the worst closing day decline since early June and reflects a deep market panic that swept across sectors.
What Caused the April 7 Market Crash?
The key reason behind this market turmoil was escalating fears of a global recession, driven by trade tensions and geopolitical uncertainties. Investors were particularly worried that the tariff war involving major economies could hurt global GDP growth and delay interest rate cuts.
With the RBI’s first bi-monthly policy of FY26 just days away and the new earnings season about to begin, nervous investors chose to sell off holdings in droves, leading to a broad-based crash.
₹14 Lakh Crore Investor Wealth Vanishes in a Day
As per provisional BSE data, investor wealth dropped by a whopping ₹14.09 lakh crore in just one session. The market capitalisation of BSE-listed companies dropped to ₹389.26 lakh crore from ₹403.35 lakh crore recorded last Friday.
This sharp fall is a clear indication of how vulnerable the Indian markets are to global triggers and sentiment shifts.
Top Losers: Metal, Financial & IT Stocks Take a Beating
Only three Nifty 50 stocks—HUL, Zomato, and Apollo Hospitals—managed minor gains (up to 0.2%). The remaining 47 stocks ended in the red.
Biggest losers included:
- Trent
- JSW Steel
- Tata Steel
These stocks plunged between 7.3% to a staggering 14.7%.
The Nifty Metal index was the hardest hit, falling 6.8%, dragged down by stocks like Hindalco, JSW Steel, Tata Steel, and Vedanta.
Financials weren’t spared either. HDFC Bank, ICICI Bank, and Reliance were among the top contributors to the losses.
Banking-related indices like Nifty Bank, Nifty Private Bank, and PSU Bank all fell between 2.8% and 3.6%.
Meanwhile, the IT, Auto, and Realty sectors also faced major cuts, sliding 2.5% to 5.7%.
Mid & Small Caps Also Crumble
Broader market indices were equally affected:
- Nifty Midcap 100 fell by 3.6%
- Nifty Smallcap 100 fell by 3.9%
The market breadth remained highly negative throughout the trading session with only 570 stocks advancing, while a whopping 3,515 declined on the BSE.
What Lies Ahead?
With Tata Consultancy Services (TCS) set to release its quarterly results on April 10, all eyes are on how IT sector earnings will shape market sentiment. Investors will also closely watch the RBI policy announcement, hoping for stability amidst the global chaos.
This major market crash is a reminder of the unpredictable nature of global-linked equity movements. Diversification and disciplined investing remain key to navigating such volatility.
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