Why the Indian Stock Market Is Falling Today: Sensex Crashes Nearly 4,000 Points, Nifty Below 21,750—April 7, 2025 Breakdown
Indian stock markets opened deep in the red on Monday, April 7, 2025, with the Sensex crashing over 3,900 points and the Nifty 50 tumbling more than 1,100 points. This dramatic fall wiped out lakhs of crores in investor wealth and triggered panic across Dalal Street.
If you’re searching for why the Indian stock market is falling today or what caused the Sensex to drop today, here’s the full story.
📉 Sensex and Nifty Live Update Today
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BSE Sensex opened at 71,425, down 3,939 points (–5.22%)
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Nifty 50 opened at 21,743, down 1,160 points (–5.06%)
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Over ₹19.4 lakh crore in market wealth was wiped out in a single day
This is the steepest intraday fall for Indian indices since the early pandemic sell-off in March 2020.
🔍 Nifty 50 Fell Today—Here’s the Reason
1. Global Trade War Reignites
The biggest trigger behind today’s fall is the sudden escalation in global trade tensions. U.S. President Donald Trump announced new tariffs, impacting trade with China and several other nations. This has caused fear of a global trade war, which tends to hurt stock markets across the board.
2. Recession Signals in the U.S.
Markets are also nervous about a potential recession in the U.S., which could impact global economic growth. Since India is closely tied to the global economy, this raised fears of a slowdown here too.
3. All Sectors in Red
Major sectoral indices saw sharp declines:
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Nifty Metal Index dropped 8%
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Nifty IT Index fell over 7%
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Banking, auto, and FMCG stocks were also under heavy pressure
💸 Investor Wealth Hit Hard
A staggering ₹19.4 lakh crore was erased from the total market capitalization of BSE-listed companies. The combined value of the Indian stock market now stands at ₹383.95 lakh crore — significantly lower than the previous session.
📈 Market Volatility Surges
The India VIX, which measures market fear and volatility, shot up by more than 56%. A spike like this usually indicates that traders are expecting more wild price swings in the short term.
🌍 Global Sell-Off Adds Fuel to the Fire
Today’s crash isn’t just limited to India:
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FTSE 100 (UK) fell 6%
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Nikkei 225 (Japan) dropped nearly 9%
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Taiwan stock market plunged 10%
This shows that the market panic is global, driven by uncertainty around tariffs, trade, and economic growth.
🧠 What Should You Do Now as an Investor?
If you’re invested in the markets and wondering what to do next, here’s the bottom line: don’t panic. Volatility like this can be unnerving, but financial experts suggest that long-term investors should stay focused on fundamentals.
If you’re holding quality stocks, use this correction to your advantage rather than selling in fear.
✅ Summary: Stock Market Crash Reason—April 7, 2025
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Sensex and Nifty fell sharply today due to global economic concerns
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Main cause: U.S. tariff hike and fears of global trade war
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All sectors — especially IT and metals—saw major losses
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Investor wealth loss: Over ₹19 lakh crore
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India VIX up 56%, indicating extreme fear
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Experts advise caution, not panic
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