In a brutal Monday meltdown, the Nifty50 crashed 5%—marking its worst single-day performance since the Lok Sabha election result debacle on June 4, 2024—triggering flashbacks of past market horrors and raising fresh fears of a bear market knocking at the door.
The Sensex also tumbled nearly 4,000 points in early trade, slipping below the 71,500 mark. Blue-chip bloodshed was rampant: Tata Steel and Tata Motors plummeted 9–10%, while heavyweight stalwarts like Reliance Industries, HDFC Bank, and ICICI Bank slid 4–5% each in an all-out selloff that spared few.
Also read | Nifty catches Wall Street's fever: Bear market growls turn into roars after massive selloff
This was only the second time since the Covid crash of 2020 that Indian markets have fallen more than 5% in a single day. With the Nifty now down 17% from its peak, the benchmark index is less than 1,000 points away from officially entering bear market territory at 21,022.
"Today’s Black Monday has shaken Indian markets, but investors and traders must stay calm," said Pranay Aggarwal, Director & CEO at Stoxkart. “Volatility brings opportunity, but only with strong risk management… Remember, this too shall pass.”
Also read | Are bank stocks bullet-proof in a tarrif-ied world? FII’s $2 billion bet says so
The latest carnage comes despite macro tailwinds like a falling dollar index, softer crude prices, and easing bond yields—all typically positive for Indian equities. But not this time. Not when a tariff tornado, stagflation fears, and recession worries out of the US are crushing investor sentiment across continents.
“Tariffs have re-emerged as a major wild card, shaking global confidence and rattling equity markets,” said Robin Arya, Founder & CEO of GoalFi. “But such macro shocks, while unnerving, don’t change the long-term fundamentals of well-run businesses… Headlines may dominate, but fundamentals ultimately prevail.”
FIIs seem to agree—somewhat. In March, they took shelter in financial stocks, one of the few segments showing relative calm amid the chaos.
According to Arvind Kothari, Founder at Niveshaay, “Markets are reacting to tariff-related concerns and global uncertainties, yet these periods of volatility have always tested—and ultimately rewarded—long-term conviction… Panic is rarely a strategy.”
Still, the road ahead remains foggy. “Technically, the Nifty may retest the 21,500 mark,” said Vishnu Kant Upadhyay, AVP at Master Capital Services. “A decisive break below this could open the door for further downside toward 21,000.” Upadhyay flagged Finance, FMCG, and Oil & Gas as relative safe havens for patient investors.
Meanwhile, Karthick Jonagadla of Quantace Research sees a rebound led by Private Banks, FMCG, Oil Marketing Companies (OMCs), and Paints. “Private banks are poised to deliver sustainable ROIs of 15–17%, driven by improving liquidity and robust credit growth. And with falling crude oil prices, inflation could ease, supporting FMCG and consumption plays.”
For investors gripping the edge of their seats, it’s not just about the next trade—it’s about the mindset.
Radhika Gupta of Edelweiss reminded investors of the Covid-era meltdown. “Back then, everything was red, and the world looked like it would end,” she said. Her advice: Keep cash (emergency fund), keep calm, and carry on.
That sentiment is echoed by Arya: “For investors, this is the time to review, not retreat—to stay diversified and aligned with your financial goals.”
As the market inches closer to a technical bear zone, one thing is clear—this is not a time for heroics or panic. This is a time to breathe, assess, and resist the noise.
The Sensex also tumbled nearly 4,000 points in early trade, slipping below the 71,500 mark. Blue-chip bloodshed was rampant: Tata Steel and Tata Motors plummeted 9–10%, while heavyweight stalwarts like Reliance Industries, HDFC Bank, and ICICI Bank slid 4–5% each in an all-out selloff that spared few.
Also read | Nifty catches Wall Street's fever: Bear market growls turn into roars after massive selloff
This was only the second time since the Covid crash of 2020 that Indian markets have fallen more than 5% in a single day. With the Nifty now down 17% from its peak, the benchmark index is less than 1,000 points away from officially entering bear market territory at 21,022.
"Today’s Black Monday has shaken Indian markets, but investors and traders must stay calm," said Pranay Aggarwal, Director & CEO at Stoxkart. “Volatility brings opportunity, but only with strong risk management… Remember, this too shall pass.”
Also read | Are bank stocks bullet-proof in a tarrif-ied world? FII’s $2 billion bet says so
The latest carnage comes despite macro tailwinds like a falling dollar index, softer crude prices, and easing bond yields—all typically positive for Indian equities. But not this time. Not when a tariff tornado, stagflation fears, and recession worries out of the US are crushing investor sentiment across continents.
“Tariffs have re-emerged as a major wild card, shaking global confidence and rattling equity markets,” said Robin Arya, Founder & CEO of GoalFi. “But such macro shocks, while unnerving, don’t change the long-term fundamentals of well-run businesses… Headlines may dominate, but fundamentals ultimately prevail.”
FIIs seem to agree—somewhat. In March, they took shelter in financial stocks, one of the few segments showing relative calm amid the chaos.
According to Arvind Kothari, Founder at Niveshaay, “Markets are reacting to tariff-related concerns and global uncertainties, yet these periods of volatility have always tested—and ultimately rewarded—long-term conviction… Panic is rarely a strategy.”
Still, the road ahead remains foggy. “Technically, the Nifty may retest the 21,500 mark,” said Vishnu Kant Upadhyay, AVP at Master Capital Services. “A decisive break below this could open the door for further downside toward 21,000.” Upadhyay flagged Finance, FMCG, and Oil & Gas as relative safe havens for patient investors.
Meanwhile, Karthick Jonagadla of Quantace Research sees a rebound led by Private Banks, FMCG, Oil Marketing Companies (OMCs), and Paints. “Private banks are poised to deliver sustainable ROIs of 15–17%, driven by improving liquidity and robust credit growth. And with falling crude oil prices, inflation could ease, supporting FMCG and consumption plays.”
For investors gripping the edge of their seats, it’s not just about the next trade—it’s about the mindset.
Radhika Gupta of Edelweiss reminded investors of the Covid-era meltdown. “Back then, everything was red, and the world looked like it would end,” she said. Her advice: Keep cash (emergency fund), keep calm, and carry on.
That sentiment is echoed by Arya: “For investors, this is the time to review, not retreat—to stay diversified and aligned with your financial goals.”
As the market inches closer to a technical bear zone, one thing is clear—this is not a time for heroics or panic. This is a time to breathe, assess, and resist the noise.
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