Indian Stock Market Loses ₹30 Trillion Since March Peak Amid Global Trade Chaos

India’s stock market has lost nearly ₹30 trillion in value since its March 2025 peak, driven by rising global tensions and fears of a slowdown. The market downturn followed U.S. President Donald Trump’s steep tariffs on Chinese goods, which triggered retaliatory measures from China and other countries, spooking global investors. Despite a prior recovery, Indian benchmark indices like the Sensex and Nifty saw sharp declines, with metal and auto stocks among the worst hit.

Major companies such as Vedanta, Hindalco, Tata Motors, and Tata Steel saw their market caps fall by around 20%. Out of the Nifty 500, only 40 companies posted gains, most of them modest. However, a few like Tata Consumer Products and Aster DM Healthcare managed to rise over 7–10%. Market volatility surged, with the India VIX spiking 60% as investor sentiment turned risk-averse. Analysts remain cautious, warning that while India isn’t directly impacted by tariffs, the broader global fallout could delay investments and hurt credit growth.

Indian Stock Market Loses ₹30 Trillion Since March Peak Amid Global Trade Chaos

India’s stock market has plunged into turmoil, erasing a staggering ₹30 trillion in market value since hitting its peak on March 24, 2025. This sharp decline comes just months after the market had rebounded over 8% from its September 2024 lows—highlighting how fragile investor confidence has become amid rising global trade tensions.

The trigger for the latest sell-off was a sudden escalation in international trade disputes. U.S. President Donald Trump’s announcement of steep tariffs—54% on Chinese imports—sparked immediate retaliation. China hit back with 34% duties on all U.S. goods, Canada imposed tariffs on American-made vehicles, and France urged businesses to halt new investments in the U.S. These actions rattled global markets, and India found itself caught in the crossfire despite not being directly targeted.

Few Winners, Many Losers

Amid the carnage, only 40 out of the 500 companies listed on the Nifty 500 index managed to grow their market value. Even among these, 13 posted marginal gains of less than 1%. The standout performers included Tata Consumer Products, which rose by 7%, while Aster DM Healthcare, BSE (formerly Bombay Stock Exchange), and Vardhman Textiles climbed just over 10%. Analysts credit Tata Consumer’s resilience to its diversified portfolio and consistent demand for essential goods, while healthcare and textile stocks benefited from sector-specific tailwinds.

On the flip side, the downturn hammered several industry giants. Metal stocks took the biggest hit, with Vedanta, Hindustan Copper, and Hindalco each losing over 20% of their market value. Tata Group companies Tata Motors and Tata Steel also nosedived, shedding nearly a fifth of their market capitalisation. Other major losers included Central Bank of India, KPIT Technologies, Anant Raj, NALCO, and UCO Bank—highlighting the widespread pressure across sectors.

Market Volatility Hits Multi-Month High

The turbulence peaked on Monday, April 7, when Indian indices suffered their worst single-day crash since June 2024. The Sensex plunged almost 4,000 points intraday to 71,425, while the Nifty50 fell below the 21,800 mark. India’s market volatility gauge, the India VIX, spiked by 60% in a single session as traders rushed to hedge their positions.

Investors are now grappling with concerns that rising global trade barriers could derail India’s economic momentum. While the country isn’t directly involved in the U.S.-China tariff war, analysts warn that a slowdown in international trade and reduced foreign investment could delay corporate expansion plans and weaken credit growth. Strategists at Bank of America (BofA) have advised caution, pointing out that Indian equities remain expensive compared to other emerging markets—leaving them more vulnerable to further corrections.

Broader Implications for India

The tariff wars have reignited worries about a broader global economic slowdown. As the U.S., China, and Europe clash, India’s export-driven sectors—from textiles to automotive parts—face serious headwinds. At the same time, domestic industries that rely on imported raw materials, such as metals and electronics, may see pressure on margins due to rising input costs.

Market experts note that this isn’t India’s first brush with volatility. Similar jitters occurred during the 2024 general elections and during the Japanese yen carry trade unwinding in August 2024, which shook Asian markets. However, the current crisis is more complex due to its global scale and the threat of prolonged trade fragmentation.

What’s Next?

In the near term, investors are expected to shift towards defensive stocks such as consumer goods, healthcare, and utilities—sectors that tend to perform better during downturns. Gold and bonds may also regain favour as safe-haven assets. Meanwhile, sectors tied to global trade—like metals, auto, and IT—could remain under pressure until the dust settles.

Policymakers have their work cut out. While the Reserve Bank of India may consider rate cuts to support growth, its options could be limited by inflation risks arising from higher import costs. On the fiscal side, the government may need to speed up infrastructure spending and roll out export incentives to cushion the blow.

For retail investors, the message is clear: be cautious and stay diversified. Focusing on companies with strong fundamentals, low debt, and steady cash flows could help weather the storm. As history shows, markets do recover—but the road ahead may be anything but smooth.

The coming weeks will be crucial. Any signs of easing global tensions or a rebound in domestic demand could help lift investor sentiment. Until then, India’s markets are likely to remain on a volatile path.