New Delhi:
Monday was no less than a shock for global and domestic market. US President Donald Trump’s tariff statements and the ever -growing trade war have shook the economy of the whole world. Along with the US, there was a huge decline in the markets of Asia and Europe and it also had a direct impact on the Indian market.
Today, on April 7, with the opening of the stock market, the Sensex broke over 3,900 points and the Nifty also fell more than 1,100 points. This decline was the decline of the largest one day since June 2024.
The reasons for this decline are not only one or two, but many global factors. The biggest reason is Trump’s statement about tariffs in America, in which he said that the market sometimes needs ‘medicine’. He also said that even though there is loss in the global market, he will not compromise with any country until the trade deficit is over. After Trump’s statement, it became clear that the trade war will not end soon and the world’s big economy will have to face its effect.
What is ‘Black Monday’?
Something similar happened in 1987, when the destruction known as ‘Black Mande’ came. On that day the US index Dow Jones fell 22.6% in a single day. On this day, S&P 500 index was also broken by more than 20%. After this incident, panic spread in the global market, which showed the effect on the market around the world. And now again many experts are fearing ‘Black Mande 2.0’.
1987 Black Mande returns in the stock market?
Recently, the US stock market cleared a value of $ 6 trillion in a day and major indexes like Dow Jones, Nasdac, S&P 500 were badly broken. CNBC host Jim Cramer also warned that Monday can be like a 1987 Black Mande.
Asian markets also could not escape this shock. The index of Japan, South Korea, Australia and Taiwan saw a decline of 4% to 10%. Japan’s stock exchange had to be closed for some time, as the fall triggers the circuit breaker.
It also had a direct impact on the Indian market. The Sensex fell more than 5% to 71,425, while the Nifty fell more than 5% to 21,743. This decline is also considered serious because the meeting of RBI’s Monetary Policy Committee has started from today and in such a situation, more uncertainty has increased in the minds of investors.
In such a situation, it is clear that Global Economy is currently facing a big challenge. Trump’s tariffs, China-America trade wise, the apprehension of global slowdown and now the Black Mande-like atmosphere in the market … All these factors have once again reminded the investors of the 1987 Black Mande.
Also read- Stock Market Crash: Indian stock market current with Trump tariff, 19 lakh crores of investors drowned
Due to fear of tariff war, outcry in the global market, Trump said – this is a medicine, it will be affected!