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Indian benchmark indices Sensex and Nifty fell sharply on Monday as fears of a global trade war and a potential recession in the U.S. triggered a widespread sell-off across global markets. The Sensex tanked 2,227 points, or 2.95%, to close at 73,137, while the Nifty50 dropped 742 points, or 3.24%, to settle at 22,161.The sell-off was broad-based, with all sectoral indices ending in the red. Metal, realty, auto, financial, and IT stocks led the decline. The total market capitalisation of BSE-listed companies plunged by Rs 14 lakh crore, falling to Rs 389 lakh crore.6 reasons why stock market crashed today:1. Nasdaq enters bear marketThe Nasdaq index officially entered a bear market on Friday, falling more than 20% from its recent peak. The decline followed U.S. President Donald Trump’s announcement of sweeping tariffs earlier in the week, which sparked fears of a global economic slowdown. The scale and scope of the tariffs surprised investors, triggering sharp selloffs across global markets.Federal Reserve Chair Jerome Powell said the tariffs were “larger than expected” and warned they could significantly impact both inflation and economic growth, adding to the uncertainty surrounding the U.S. economic outlook.2. Global selloffIndian equities mirrored sharp declines across global markets, with major Asian indices plunging across the board. Japan’s Nikkei dropped 7.7%, South Korea’s Kospi fell 5.6%, and China’s Shanghai Composite slid 7.3%. Hong Kong’s Hang Seng index tumbled over 13%.U.S. futures also extended losses, with Nasdaq futures down 3.5% and S&P 500 futures falling 3.1%. In Europe, the pan-European STOXX 600 slumped 5.8%, marking its fourth straight session of losses and its steepest one-day fall since the COVID-19 pandemic.3. Recession fears overshadow inflation worriesMarket participants now believe that recession concerns outweigh short-term inflation risks. While U.S. consumer price index (CPI) data, due later this week, is expected to show a 0.3% increase for March, analysts fear that tariffs will soon drive up costs significantly across sectors — from groceries to automobiles.These rising input costs are also expected to squeeze corporate profit margins, just as earnings season begins. Around 87% of U.S. companies are set to report results between April 11 and May 9, with major banks among the first to announce earnings.4. Sharp plunge in global commodity pricesGlobal commodity prices tumbled amid mounting fears of weakening demand and a looming economic slowdown.Brent crude fell 6.5%, WTI dropped 7.4%, while gold slipped 2.4% and silver plunged 7.3%. Base metals also saw steep declines, with copper down 6.5%, zinc 2%, and aluminium 3.2%, as escalating trade tensions and recession concerns rattled investor confidence.5. Investors flee to safe havensInvestors rushed to safer assets amid growing fears of a global recession, further pressuring equity markets. The yield on the 10-year U.S. Treasury fell 8 basis points to 3.916% as demand for government bonds surged. Fed funds futures also spiked, pricing in an additional 25-basis-point rate cut by the U.S. Federal Reserve this year.This flight to safety triggered broad-based selling in equities, as risk-off sentiment deepened across global markets. Despite Fed Chair Jerome Powell stating on Friday that the central bank is “in no hurry” to adjust policy, market expectations now reflect a 56% chance of a rate cut as early as May.6. Escalating global trade warFears of a global trade war intensified after China announced retaliatory tariffs on a broad range of U.S. goods, following sweeping U.S. tariff hikes earlier in the week. The escalating tit-for-tat measures have raised concerns about a slowdown in global trade and economic growth.Investors worry that prolonged trade tensions between the world’s two largest economies could disrupt supply chains, dampen corporate earnings, and further weaken already fragile global demand—contributing to the sharp selloff in equities worldwide."Global markets are experiencing heightened volatility driven by extreme uncertainty. No one has a clear sense of how this turbulence triggered by Trump's tariffs will unfold. A ‘wait and watch’ approach may be the best strategy in this phase of market instability," said Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Asian shares nosedived on Monday after the meltdown Friday on Wall Street over U.S. President Donald Trump's tariff hikes and the backlash from Beijing. U.S. futures also signaled further weakness. The future for the S&P 500 lost 2.5% while that for the Dow Jones Industrial Average shed 2.1%. The future for the Nasdaq lost 3.1%. Tokyo's Nikkei 225 index lost nearly 8% shortly after the market opened. By midday, it was down 6% at 31,758.28. A circuit breaker briefly suspended trading of Topix futures after an earlier sharp fall in U.S. futures. Chinese markets often don't follow global trends, but they also tumbled. Hong Kong's Hang Seng dropped 9.4% to 20,703.30, while the Shanghai Composite index lost 6.2% to 3,134.98. South Korea's Kospi lost 4.1% to 2,363.82, while Australia's S&P/ASX 200 lost 3.8% to 7,377.70, recovering from a loss of more than 6%. Oil prices sank further, with U.S. benchmark crude down 4%, or $2.50, at $59.49 per barrel. Brent crude, the international standard, gave up $2.25 to $63.33 a barrel. In currency trading, the U.S. dollar fell to 146.70 Japanese yen from 146.94 yen. The yen is often viewed as a safe haven in times of turmoil. The euro slipped to $1.0926 from $1.0962. On Friday, Wall Street's worst crisis since COVID slammed into a higher gear. The S&P 500 plummeted 6% and the Dow plunged 5.5%. The Nasdaq composite dropped 5.8%. Market observers expect investors will face more wild swings in the days and weeks to come, with a short-term resolution to the trade war appearing unlikely. Nathan Thooft, chief investment officer and senior portfolio manager at Manulife Investment Management, said more countries are likely to respond to the U.S. with retaliatory tariffs. Given the large number of countries involved, "it will take a considerable amount of time in our view to work through the various negotiations that are likely to happen." "Ultimately, our take is market uncertainly and volatility are likely to persist for some time," he said. The losses came after China matched President Donald Trump's big raise in tariffs announced last week, upping the stakes in a trade war that could end with a recession that hurts everyone. Even a better-than-expected report on the U.S. job market, usually the economic highlight of each month, wasn't enough to stop the slide. So far there have been few, if any, winners in financial markets from the trade war, and China's response to the U.S. tariffs caused an immediate acceleration of losses in markets worldwide. The Commerce Ministry in Beijing said it would respond to the 34% tariffs imposed by the U.S. on imports from China with its own 34% tariff on imports of all U.S. products beginning April 10, among other measures. The United States and China are the world's two largest economies. A big fear is that the trade war could cause a global recession. If it does, stock prices may need to come down even more than they have already. The S&P 500 is down 17.4% from its record set in February. Trump seemed unfazed. From Mar-a-Lago, his private club in Florida, he headed to his golf course a few miles away after writing on social media that "THIS IS A GREAT TIME TO GET RICH." The Federal Reserve could cushion the blow of tariffs on the economy by cutting interest rates, which can encourage companies and households to borrow and spend. But the Fed may have less freedom to move than it would like. Fed Chair Jerome Powell said Friday that tariffs could drive up expectations for inflation and lower rates could fuel still more price increases. "Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem," Powell said. Much will depend on how long Trump's tariffs stick and what kind of retaliations other countries deliver. Some of Wall Street is holding onto hope that Trump will lower the tariffs after prying "wins" from other countries following negotiations. Trump has said Americans may feel "some pain" because of tariffs, but he has also said the long-term goals, including getting more manufacturing jobs back to the United States, are worth it.

Stock markets recovered on Wednesday with benchmark Sensex closing higher by nearly 593 points on strong macro data and value buying by investors after recent free-fall ahead of US tariff announcements.Stocks that were in focus include names like Shriram Finance, which rose 0.44% and BEL, which declined 3.2% and RITES, whose shares rose 0.6% on Wednesday.Here's what Viral Chheda, Sr Analyst at SSJ Finance & Securities, recommends investors should do with these stocks when the market resumes trading today.Tata MotorsTata Motors is currently trading around Rs 613, which is close to a crucial support zone. The stock has shown strong price action in recent months, and this level has historically acted as a demand zone, offering a good base for potential rebounds.If the broader market sentiment remains stable, a bounce from this support could take the stock higher towards its recent highs. Investors may consider this as a good accumulation level with a tight stop loss below the support zone.RILReliance Industries (RIL) is hovering near Rs 1204, which is a key support area both technically and psychologically. The stock has been under some pressure lately, but it has managed to hold above this level multiple times in the past.As long as RIL sustains above Rs 1200, it holds potential for a short-term recovery. A positive price action or a reversal candle near this zone could trigger fresh buying interest.ZomatoZomato, trading at a current market price of Rs 210, is also near a strong support level. The stock has seen a healthy correction after a sharp rally, and Rs 208–210 has acted as a support area during previous pullbacks. With overall sentiment in the new-age tech space showing signs of stability, Zomato may find buying interest at these levels.A bounce from here could push the stock back towards its recent swing highs, making it a favorable zone for short-term traders with a defined stop loss.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)