*_Rs.20 lakh crores in 10 seconds, oops.._*

*_Rs.20 lakh crores in 10 seconds, oops.._*

_# Why is the market so ‘bloodbath’?_

Courtesy / Source by:

_(Anamchinni Venkateswara Rao from Mumbai, leading investigative journalist, 9440000009)_

Fears of recession due to Trump’s tariff bomb.. Global trade war concerns have engulfed the Indian stock markets. Domestic indices have collapsed in an unprecedented manner. If investors’ wealth has evaporated by Rs.20 lakh crore in just 10 seconds.. then you can understand the extent of the market collapse.

The Sensex fell by 3,939.68 points (5.22 percent) in early trading. At that time, the market value of BSE-listed companies decreased by Rs. 20,16,293.53 crore.. to Rs.  3,83,18,592.93 crore. BSE Midcap and Smallcap indices fell by 10 percent. The VIX index, which indicates market volatility, rose by 57 percent.

*_The reasons for the market fall are..:_*

Many markets around the world have been severely affected by the impact of Trump's tariffs. Asian and European indices are suffering heavy losses on Monday. Japan's Nikkei is in a loss of 7 percent. US markets also fell heavily last weekend. Analysts are of the opinion that heavy losses are inevitable on Wall Street on Monday as well.

Experts predict that inflation will increase due to Trump's tariffs.. and corporate profits may decrease. This may have a negative impact on consumer sentiment. As a result, economic growth is likely to slow down. This has raised fears of a recession.  JP Morgan has increased the chances of an economic recession in the US and the world from 40 percent to 60 percent. 

The Trump government is already collecting 10 percent tariffs, the base tariff, from more than 180 countries. The US president has once again made it clear that there will be no rollback on the tariffs until the trade deficit is resolved. This has caused concern among investors. 

Foreign portfolio investors are withdrawing their investments in April in the wake of global economic uncertainties. FPIs have sold equities worth Rs 13,730 crore so far this month. Experts warn that these sales could be even higher if India does not reach a deal with the Trump administration. 

Companies are set to announce major quarterly results this month. In addition, the RBI's monetary policy review has also begun. The RBI will announce its decisions on April 9.  Investors, focused on these developments, turned to selling, causing the markets to become bearish.