Trump tariffs trigger ₹11.3 lakh crore wipeout in Indian markets since April 2

Indian stock markets have witnessed a sharp sell-off since the start of April, as mounting global tariff tensions wiped out ₹11.3 lakh crore in investor wealth on Dalal Street.

The slide began after US President Donald Trump announced sweeping tariffs in early April, igniting fears of a global trade war. The BSE Sensex fell 1,460.18 points, or 1.90%, since April 2, as nervous investors reacted to rising uncertainty across international markets.

Market capitalisation of BSE-listed companies dropped from ₹412.98 lakh crore on April 2 to ₹401.67 lakh crore, marking a staggering ₹11.3 lakh crore ($4.66 trillion) erosion.

Tensions escalated further as China hit back with retaliatory tariffs, hiking duties on American goods by 125%, after the US announced a 145% levy. India, too, was caught in the crossfire, with the US imposing a 26% tariff on Indian imports.

Markets temporarily recovered after Trump suspended additional tariffs for 90 days until July 9, prompting a near 2% rally on hopes of easing global trade tensions.

“Global markets were shaken by Trump's sweeping reciprocal tariff plans, and India was no exception. Although the Indian markets fared relatively better, the uncertainty is palpable,” said Satish Chandra Aluri, Analyst at Lemonn Markets.

Vishnu Kant Upadhyay, AVP, Research & Advisory at Master Capital Services, noted that the biggest worry remains the global uncertainty stemming from US-China tensions. He added that while India’s economy stands on strong fundamentals, sustained policy support will be crucial to shield industries from external shocks.

Looking ahead, experts remain cautiously optimistic. Upadhyay expects a market rebound in the second half of FY26, led by improved corporate earnings and renewed foreign capital inflows, especially as valuations turn attractive. However, a full recovery hinges on the stabilisation of global economic conditions.

Indian markets were closed on April 10 and April 14 on account of Mahavir Jayanti and Dr. B R Ambedkar Jayanti.