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Stock Market Bleeds: India Drops 4% But Still Holds Stronger

India’s stock market plunged over 4% but outperformed collapsing Asian peers as global trade fears spooked investors.

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Stock Market Bleeds: India Drops 4% But Still Holds Stronger

The Indian stock market experienced a volatile day on April 7, 2025, as the Sensex and Nifty 50 fell more than 4%. Nevertheless, in a day of general financial fear, the Indian share market was still able to outperform most major Asian indexes. The BSE Sensex fell by 3,230 points, closing at 72,134.56, while the Nifty 50 declined 1,034 points, closing at 21,870.10. Although the losses were severe, India’s stock market demonstrated some resilience in the face of a vicious regional sell-off brought about by fears over global trade.

Indian Stock Market Outperforms Regional Collapse

The Sensex started at a low 71,449.94 but recovered some of its losses during the day. The Nifty 50 too began weak at 21,758.40 but recovered slightly. Top Sensex draggers were Tata Steel, Tata Motors, L&T, HCLTech, and Kotak Mahindra Bank. On the Nifty 50, the losers’ list was led by Trent, JSW Steel, Shriram Finance, and Tata Motors.

Despite these losses, analysts cited India’s relatively stable stock market framework, better domestic fundamentals, and less foreign investor dependence. In contrast to markets such as Taiwan and Hong Kong, India’s retail investor base is also considered less speculative, serving to cushion the blow.

Asia’s Stock Markets Reeling From Tariff Shockwaves

In Asia, the stock markets suffered the greater damage. Hong Kong’s Hang Seng index plummeted almost 13%—its worst in decades. Taiwan’s Taiex plummeted almost 10% in initial trade and fluctuated about a 9% loss by afternoon. Japan’s Nikkei declined more than 7%, highlighting the panicky nature of the region.

The sell-off followed new US tariffs imposed by then-President Donald Trump, reviving concerns of a trade war. Global investors quickly withdrew funds from risky assets, causing a sharp shock in Asian stock markets.

Stock Market Volatility: India Holds Ground For Now

Though the Indian stock market performed better than its peers, there is uncertainty ahead. As global tensions escalate, currency volatility and trade disruptions lie ahead, investors will likely continue to face pressure. Don’t be complacent, say experts, stay vigilant to changes in policy both internationally and in India.

The Indian stock market is low—but far from out. The next few weeks will prove if its strength lasts.