US President Trump move shaves off Rs 14 trillion in market capitalisation

The market rout slashed India's market capitalisation (mcap) by ₹14 trillion (over $160 billion), bringing it to ₹389.3 trillion ($4.54 trillion).

 

This marked the largest single-day decline in mcap in eight months, with the closing value hitting its lowest point since March 4.

 

The wealth destruction is on account of fears that the tariffs imposed by US President Donald Trump would upend global trade, slow global growth and push the US economy into recession.

 

While Monday’s erosion was among the highest for a single-day post Covid, it is still modest given the scale of fall in global markets. During the last three trading sessions, the world market has declined by $9 trillion to $113.7, primarily led by the US.

 

 

“World markets are still coming to terms with the new global tariff war. It is still not clear how the global business environment will evolve over the next few months and who will suffer and who will benefit. This uncertainty is increasing the risk premiums in the market. As the story plays out over the next few weeks, we expect markets to stabilise and clear winners and losers will emerge,” said Bino Pathiparampil, head of research, Elara Capital. 

 

Since its recent high of ₹418 trillion on March 24, India's mcap has fallen by ₹29 trillion. Compared to its all-time peak of ₹478 trillion on September 27, the mcap has dropped by nearly ₹89 trillion. In dollar terms, India’s mcap has seen an erosion of over $1 trillion from the peak.

 

On Monday, the top eight business groups in the country saw their combined market value decrease by ₹4.1 trillion, with the Tata group leading the losses at nearly ₹1 trillion.

 

The market value of Mukesh Ambani-led Reliance group fell by almost ₹60,000 crore to ₹17.4 trillion, while Adani group firms also declined by almost half a trillion rupees to ₹12 trillion.

 

Since September, the top eight business groups have shed ₹22 trillion — accounting for a fourth of the total mcap losses from the peak.