Indian Markets Quake as Tremors  Rip Through Toronto to Auckland

It was a punishing start to the week for Indian equity markets. The BSE Sensex slumped 3076 points or 4.1% to 72300.31, while the Nifty 50 fell  points or  4.4% to 21906.40. Indian market were no different from anywhere else in the world. 

India is not alone in feeling the heat. Markets across Asia opened deep in the red. Japan’s Nikkei declined over 6%, South Korea’s Kospi fell 4.4%, and Hong Kong’s Hang Seng dropped more than 10%. The trigger is a fresh wave of trade tensions. Over the weekend, US President Donald Trump announced reciprocal tariffs on over 60 countries, including India. China retaliated with a 34% tariff on US goods. The escalation of protectionist policies has revived fears of a global recession, sending shockwaves through financial markets.

Domestic factors have further darkened the mood in India. The Reserve Bank of India’s three-day monetary policy meeting kicks off today, and markets are anxious to see whether the central bank will take decisive steps to tackle inflation and provide liquidity. Investor caution is also being fuelled by a sustained exodus of foreign capital—foreign institutional investors withdrew over $2.5 billion from Indian equities last week alone, exacerbating an already fragile market sentiment.

Sectoral losses were broad-based. Information technology and metals led the decline, with shares of Infosys and Tata Steel falling sharply on concerns about weakening global demand. The pharmaceutical sector also saw heavy selling amid speculation that Indian pharma exports could be targeted in the latest wave of US tariffs. Automobile stocks came under pressure, particularly Tata Motors, after its UK subsidiary Jaguar Land Rover halted US-bound shipments in response to the tariff hikes. Even defensive plays such as fast-moving consumer goods saw declines, though losses here were relatively modest.

For investors, days like these can feel unsettling. But market corrections are not uncommon, especially during periods of heightened global uncertainty.  Meanwhile, the January–March earnings season begins later this week. The quarterly results will offer a timely snapshot of how India Inc. is navigating this storm and could help recalibrate investor expectations.