- India,
- 07-Apr-2025 09:26 AM IST
Stock Market Crash: Monday, 7 April is indicating a horrific start in the Indian stock market. With GIFT Nifty falling more than 900 points in early trade, it has become clear that today can prove to be a 'Black Monday'. These signs of a possible big fall in the market can cause concern for investors.Alarm bells for Sensex and NiftyGIFT Nifty's signals are indicating that the benchmark indices may open around March 4's low of 21,964. This is the same level from where Nifty started a strong recovery and jumped by about 1,900 points. But by Friday, the index had lost 50% of that recovery, which clearly reflects the weakness of the market.Selling storm in global marketsNot only the Indian market, but markets around the world are also witnessing strong selling. US S&P 500 futures have fallen by 4.31% and Nasdaq futures by 5.45%. Asian markets are also in a slump:Japan's Nikkei fell 7.8% to its lowest level since 2023.South Korea's market tumbled 4.6%.Hong Kong's Hang Seng and Taiwan's benchmark index have fallen by up to 10%.Major reason for decline: Fear of global trade warThe biggest reason behind this global decline is US President Donald Trump's aggressive policy of raising tariffs. The US has imposed heavy tariffs on many countries, to which China, Canada and other countries have also responded by raising tariffs. This trade war has increased global economic instability, and investors are afraid of inflation and recession.What is the strategy for investors?
- Investors will have to be extremely cautious in this volatile environment:
- Long-term investors should not panic and cut positions, but keep an eye on stocks with strong fundamentals.
- Short-term traders may get a chance to take advantage of volatility, but avoid trading without a stop-loss.
- New investors should be cautious for now and stay away from investing until the market stabilizes.