Markets Roil As Global Sell-Off Deepens

Indian equity markets continued with the morning’s severe sell-off, with losses intensifying as the trading session progressed. The BSE Sensex plummeted over 3,200 points, trading at 72,129.44, while the Nifty50 slumped by 4.48% to 21,878.15. The sharp rise in the India VIX, which has surged by more than 59% to 22, underscoring the heightened panic and volatility gripping investors. The sell-off continued to be driven by a toxic combination of escalating global trade tensions, synchronised fall across global markets, and growing domestic uncertainties.

The opening of European markets has added to the chaos, amplifying the global rout. European indices opened sharply lower, with the pan-European Stoxx 600 plunging by 6%, marking one of its worst starts in years. Germany’s DAX dropped a staggering 10%, reflecting fears of a deepening economic slowdown in Europe’s largest economy. France’s CAC 40 and London’s FTSE 100 fell by over 6% each, while other regional markets such as Amsterdam and Milan indices reported losses exceeding 5%.

The sell-off reflects growing fears of a global recession triggered by US President Donald Trump’s announcement of sweeping tariffs on over 60 countries, including the European Union and China. China retaliated with a massive 34% tariff on US goods, while the EU has vowed to implement countermeasures. This escalation of protectionist policies has reignited fears of prolonged economic disruption, and is expected to continue for some time.

Indian markets continued to get battered across all major sectors. The metals sector is among the hardest hit, with the Nifty Metal index plunging over 8%. Stocks like Tata Steel and Hindalco led the rout as fears of slowing global demand weigh heavily on commodity prices. The IT sector faced a sharp declines, with the Nifty IT index down more than 7%. Heavyweights such as Infosys and TCS bore the brunt of concerns about weakening international business prospects amidst global economic uncertainty. Automobiles have not been spared either; auto stocks have fallen over 5%, with Tata Motors particularly under pressure after its UK subsidiary Jaguar Land Rover halted shipments to the US in response to tariff hikes.

The pharmaceutical sector too was not spared and reeled under selling pressure amid speculation that Indian exports could be targeted in the latest wave of US tariffs. Energy and realty sectors too fell by over 5%, reflecting broader concerns about slowing economic activity and rising risk aversion. Broader market indices fared even worse; with small-cap stocks tumbling nearly 10%, while mid-caps are down over 7%.

Adding to investor anxiety is the sharp surge in India VIX, often referred to as the “fear gauge”. Today’s spike reflects heightened uncertainty about near-term market direction. Historically, such sharp rises in the VIX have been associated with steep corrections in equity markets.

The day began on a grim note as Indian markets mirrored steep losses across Asia. With European markets joining the sell-off after their open, risk aversion has deepened globally.