India VIX Surges 59% Amid Global Market Turmoil; Sensex Crashes 3,900 Points

On April 7, 2025, India’s volatility gauge—the India VIX—soared over 59% to 21.94, reflecting one of the sharpest single-day spikes in recent years.

This surge coincided with a deep global selloff that sent Indian equity benchmarks into freefall, triggered by escalating US-China trade tensions and growing fears of a global recession, as per news reports.

Sensex Tanks 3,900 Points; Broader Market Sees Deeper Cuts

The Sensex nosedived over 3,900 points, and the Nifty sank below the 22,000 mark, as panic gripped investors amid a broad-based selloff. 

All 13 major sectoral indices ended in the red. Nifty Metal plunged 8%, IT dropped over 7%, and Realty, Auto, and Oil & Gas sectors saw declines exceeding 5%. 

The pain was even more pronounced in the broader markets, with small-cap stocks tumbling 10% and mid-caps sliding 7.3%.

At 11:10 AM the BSE Sensex was down 2,800.57 points, or 3.72%, trading around 72,564.12. Meanwhile, the Nifty 50 has dropped 899.55 points, or 3.93%, hovering near the 22,004.90 mark.

Several heavyweight stocks slipped to their 52-week lows amid the sharp market selloff on Monday. Notable names hitting fresh lows include Tata Motors, Reliance Industries (RIL), and Tata Consultancy Services (TCS). 

Global Jitters Weigh Heavily

Markets across the globe mirrored this sharp downturn. The Nasdaq officially entered a bear market, while commodity prices also saw a steep correction. Brent crude tumbled 6.5%, WTI fell 7.4%, gold dropped 2.4%, and silver slumped 7.3%, signalling widespread concerns about slowing global demand, as per media reports.

Asian indices saw heavy losses too. Japan’s Nikkei fell 7%, South Korea’s Kospi slipped 5%, and China’s blue-chip stocks shed nearly 7%. Hong Kong’s Hang Seng index fared worst, plunging over 10.5%. Meanwhile, U.S. and European futures also traded deep in negative territory.

The selloff was exacerbated by comments from Federal Reserve Chair Jerome Powell, who warned that the recently announced tariffs by the Trump administration were “larger than expected” and could weigh heavily on both inflation and growth in the US.

Conclusion

The surge in India’s VIX and the deep plunge in benchmark indices reflect the heightened anxiety sweeping global markets. With rising geopolitical tensions, fears of recession, and fresh trade barriers from the US, investors are bracing for prolonged volatility.

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