Dalal Street Wipes Out ₹29.03 Trillion in Market Cap Since March 2025 Peak Amid Global Tariff Turmoil

Bears have taken firm control of Dalal Street, dragging the market capitalisation (market-cap) of Indian listed companies down by a staggering ₹29.03 trillion since March 24, 2025, according to the BSE data. The steep fall comes as global risk-off sentiment intensified following escalating tariff tensions between the United States and China.

Tariff War Triggers Massive Sell-Off

The Indian stock market had staged a commendable recovery of over 8% from its lows in September 2024, lifted by optimism in global equities and domestic macro resilience. However, that momentum reversed sharply after March 24, when fresh tariff threats from U.S. President Donald Trump triggered widespread panic across global financial markets.

President Trump slapped a massive 54% tariff on Chinese exports to the U.S., a move aimed at curbing trade imbalances and protecting American manufacturers. In response, China retaliated with a 34% tariff on all U.S. imports, escalating fears of a full-blown trade war. The escalating standoff sent shockwaves through equity markets globally, and Indian equities were no exception.

On Monday, April 07, 2025 benchmark indices witnessed their worst single-day performance since June 4, 2024. The 30-share BSE Sensex plummeted 3,939 points during intraday trade to touch a low of 71,425.01, while the NSE Nifty50 breached the critical 21,800 mark, hitting an intraday low of 21,743.

Broader Market Bleeds; Metals and Banks Among Worst Hit

In the Nifty 500 index, only 40 companies managed to see an uptick in market cap since March 24. Of these, 13 companies registered gains of less than 1%, reflecting the breadth of the downturn.

Notable gainers included Tata Consumer Products, which saw a 7% rise in market cap, while Aster DM Healthcare, BSE, and Vardhman Textiles posted gains slightly above 10%. These few outperformers were overshadowed by the widespread sell-off that gripped the broader market.

Among the top losers by market cap were public sector banks and metal stocks. Central Bank of India, KPIT Technologies,Anant Raj,National Aluminium Company (NALCO), and UCO Bank were among the biggest losers in the Nifty 500 universe.

Major names from the metal space took a significant hit, with Vedanta, Hindustan Copper, and Hindalco Industries each shedding over 20% of their market value. Tata group firms Tata Motors and Tata Steel also suffered sharp declines, each losing nearly 20% of their market capitalisation.

Volatility Surges as Risk Sentiment Deteriorates

India’s market volatility gauge, the India VIX, surged 60% during Monday’s trade, marking one of the sharpest single-day increases in recent times. The sudden spike in volatility followed China’s aggressive retaliatory tariffs, which rattled investor confidence and sent traders scrambling to hedge their exposures.

The current surge in India VIX echoes previous volatility spikes in the recent past — most notably in August 2024, when the unwinding of Japanese yen carry trades led to a global market selloff, and in June 2024, ahead of the Lok Sabha election results.

Market participants now remain on edge as geopolitical tensions and concerns over global growth prospects continue to weigh on investor sentiment. Analysts expect volatility to remain elevated in the coming sessions unless clarity emerges on the evolving U.S.-China trade dynamics.

Conclusion 

The recent sell-off on Dalal Street highlights the fragility of market sentiment in the face of global geopolitical tensions. The sharp correction, driven by US-China tariff escalations, has erased months of recovery and wiped out significant investor wealth.

With volatility surging and uncertainty prevailing, investors are likely to remain cautious. Market stability will hinge on developments in global trade relations and domestic economic resilience in the coming weeks.

Also Read: Blood Bath in Indian Markets: ₹20 Lakh Crore Lost as Sensex Crashes 2900 Points, Nifty Below 21,800

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