Bloodbath In Markets: Sensex Crashes 3,000 Points, Nifty Tanks Over 4 Per Cent. But What Should Investors Do?

While some countries like China chose to retaliate against US with tariffs of their own on American imports, others like Vietnam decided to court the US president to secure a better deal.

While investors are trying to make some sense of the market conditions today, analysts are saying they should avoid giving in to the panic.

Source : Freepik

The stock markets witnessed a bloodbath on Monday as indices across the world reacted to US President Donald Trump’s staggering tariffs on several countries. From China to Vietnam, all across Asia suffered the blow of America’s new tariff strategy.

While some countries like China chose to retaliate against the Trump administration with tariffs of their own on American imports, others like Vietnam decided to court the US president and remove all duties on US shipments to get a better deal at the end of the day.

Asian Markets Bleed

However, the diplomatic strategies wreaked havoc on the stock markets across Asia. Hong Kong’s Hang Seng crashed almost 11 per cent, while Shanghai SSE Composite index plunged more than 6 per cent. Tokyo’s Nikkei 225 bled nearly 7 per cent, and South Korea’s Kospi index tanked 5 per cent.

Back home, the Sensex and Nifty plummeted more than 5 per cent in pre-open market hours. Around 10:20 AM, the domestic benchmark indices attempted to pare their losses, but remained heavily in red. The Sensex traded under 72,450, clocking a fall of nearly 3,000 points or 3.90 per cent, while the Nifty bled more than 950 points or over 4 per cent to trade at 21,950.

What Should Investors Do?

Kranthi Bathini, Director - Equity Strategy, WealthMills Securities Private Limited, noted that indices across the world are not in correction, they are clearly crashing in response to the global developments. “It is an unprecedented global sell-off. There is no place to hide at this point of time. It is a global rot and India is not an exception, we are facing the same heat,” the expert noted.

While investors are trying to make some sense of the market conditions today, analysts are saying they should avoid giving in to the panic. Gaurav Goel, SEBI registered investment advisor, pointed out that ‘Trump Trade Tariffs (TTT)’ are creating havoc across the world. He noted that US will turn out to the most impacted in the aftermath and ‘Americans the biggest victim’.

However, he argued that India will emerge as a winner once the dust settles down on the tariffs situation. “India is already negotiating and comprehensive trade deal with the US. Trade treaties with other nations are also getting accelerated. The tariffs imposed on India, vis a vis other competing nations in exports to the US, are lower and thus, help us gain advantage. Crude prices have come off substantially. The message to investors is to not panic in today’s fall. This could well be a blessing in disguise for long term investors. These are all money making opportunities in the long run. If you have spare funds do not hesitate to deploy one-third tranche today itself,” Goel suggested.

Vikas Jain, Head of Research at Reliance Securities, pointed out, "On Friday, the US S&P 500 dropped by 6 per cent, and the Dow Jones fell more than 2,000 points, marking its worst week since the COVID-19 crisis. This came after China announced it would impose reciprocal 34 per  cent tariffs on all US imports starting April 10. The sharp increase in tariffs by both the US and China could lead to higher inflation, slower global growth, and intensify trade tensions."

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