 "Trade war, Trump tariffs crush Sensex, Nifty: Market view, what to buy now?")
Stock market crash today: Stock markets witnessed a bloodbath on Dalal Street on Monday as investors saw their wealth dwindle on the bourses after US President Donald Trump's aggressive reciprocal tariffs on more than 180 countries invited retaliatory actions. China and Canada have already announced tit-for-tat tariffs of their own, while the Euro zone is reportedly considering its countermeasures, increasing risks of a global trade war, breakdown of supply chains, and an overall slowdown in economic growth.
As a result, bears came prowling on the Street on 'Black Monday', dragging the BSE Sensex 3,939.6 points or 5.2 per cent down to an intraday low of 71,425. With this, the market capitalisation of all the BSE-listed companies eroded by ₹20 trillion on an intraday basis. ALSO READ: Track our LIVE MARKET BLOG here
The NSE Nifty, meanwhile, broke the psychological level of 22,000 mark to hit an intraday low of 21,743.65. The 50-share index dropped 1,160.75 points intraday.
In the broader markets, the Nifty MidCap and SmallCap indices declined in the range of 4-5 per cent, while India's fear gauge, India VIX, soared over 56 per cent.
Analysts said the texture of the market had deteriorated considerably with volatility likely to persist in the near term. "During uncertain periods, even the stocks with strong earnings couldn't stop falling. GDP (dross domestic product) growth, inflation, core sector growth, and high-frequency indicators (HFIs) suggest that markets may have bottomed out based on valuations, technicals, and fundamentals. However, given the uncertainty surrounding us, we should adopt a cautiously optimistic stance," said Manish Jain, chief strategy officer and director, Mirae Asset Capital Markets. However, investors, analysts said, should look for opportunities in this market meltdown and stay calm to ride the rough water.
Stock Market Crash: Nifty levels to watch, where to invest, what to buy now?
According to Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services, Monday's gap-down trade on the Nifty may drag the index towards the 21,500 mark, and a decisive break below this level could open the door for further downside towards 21,000.
"On the upside, resistance is expected near 22,800, where fresh short positions could be considered. All eyes are now on the upcoming RBI monetary policy meeting on Wednesday, where a 25-basis-point rate cut is anticipated," he said.
Against this backdrop, Kant suggests investors look for long-term opportunities in the market. Sectors such as finance, oil & gas, consumption, and FMCG are likely to offer relative stability for long-term investors, he added.
Robin Arya, who is a smallcase manager, founder and CEO at GoalFi, pointed out that despite the near-term volatility in the markets, the long-term fundamentals of well-run businesses hadn't changed.
"We expect domestic-facing sectors like financials, FMCG, and infrastructure to rebound faster, given their lower global dependency and continued structural tailwinds in India. In volatile markets, headlines may dominate, but fundamentals ultimately prevail. For investors, this is the time to review, not retreat — stay diversified and aligned with your financial goals," he said. Also Read: Sensex, Nifty crash on 'Black Monday' - Why stock market is falling today?
Karthick Jonagadla, another smallcase manager and founder of Quantace Research backed private banks, FMCG, OMCs, and paint stocks to lead the recovery, while the IT sector, he said, is expected to lag.
Another way to wade through the current market volatility, according to Pranay Aggarwal - Director & CEO of Stoxkart, is to avoid panic selling, continue doing systematic investment plans (SIPs) in mutual funds (MFs), and consider buying quality stocks at discounted prices.
"Traders must prioritise capital preservation, stick to their trading plans, and avoid overtrading. Volatility brings opportunity, but only with strong risk management. Use proper stop-losses and position sizing. Monitor global cues like the US markets and crude," he said.