US Stock Market Crash Hits Hard! Will India’s Sensex, Nifty 50 Feel the Heat With Trump’s Tariffs Bite?

US Stock Market Crash: The US Stock Market witnessed a significant crash on Monday, sending shockwaves across global financial markets. Major indices tumbled, with the S&P 500 falling by 2.70%, the Dow Jones dropping over 890 points (2.80%), and the Nasdaq sliding nearly 770 points (3.81%). This steep decline is being seen as a major setback for Donald Trump, particularly due to his trade policies.

One of the biggest reasons behind the market downturn is Trump’s tariff policies. His decision to impose reciprocal tariffs on countries like China, Canada, and India has intensified trade tensions. These tariffs, set to take effect on April 2, 2025, are adding to economic uncertainty.

Will the US Stock Market Crash Affect the Indian Stock Market?

With the US stock market crash, investors in the India stock market are closely watching how Sensex and Nifty 50 react. So far, the impact on Indian indices has been relatively limited.

As of 12 noon on March 11, 2025, the Nifty 50 was trading at 22,433, down 0.12%, while the Sensex stood at 73,931, down 0.25%. The early session saw selling pressure in IT, media, and private banking stocks, but overall, the Indian stock market remained stable compared to the sharp declines in the US stock market.

Experts believe that while global uncertainties persist, India's economy has shown resilience. However, the real test will come on April 2, 2025, when Trump’s reciprocal tariffs take effect.

Donald Trump’s Tariff Policies: A Major Market Trigger?

Donald Trump’s tariff strategy has been a critical factor influencing global markets. His administration’s decision to hike tariffs on India, China and other major economies has escalated trade tensions, affecting investor sentiment.

Key concerns include:

• Impact on global trade and economic stability
• Potential pressure on emerging markets, including India
• Uncertainty for multinational businesses operating across borders

As trade policies continue to shift, market watchers expect further volatility in both the US stock market and the India stock market.

Indian Markets Hold Strong Amid Trade Tensions

Despite global concerns, analysts believe that India is well-positioned to weather the storm. A Morgan Stanley report highlighted that India’s economy benefits from:

• Low dependency on goods exports
• Strong services sector growth
• Government policy support for domestic demand

Additionally, monetary easing measures, including rate cuts, liquidity injections, and regulatory easing, are expected to support market stability.