FX.co ★ Sensex Plunges to 10-Month Low

The Indian equity market experienced a significant decline, plummeting by 2,801 points, or 3.7%, to settle at 72,535 during Monday's early trading sessions. This marks the third consecutive session where losses were recorded across all sectors. The BSE Sensex reached its lowest point since early June 2024, with the metals sector enduring the steepest drop of 7.2%, followed by technology at 5.7% and the automotive sector at 5.1%. This downturn mirrored the negative performance of US futures after Friday's disappointing session on Wall Street, which was driven by recession fears stemming from the global trade war. Investors are also preparing for the implementation of a 26% reciprocal tariff on India, scheduled for April 9. Nonetheless, it is anticipated that the Reserve Bank of India will mitigate some of the economic strain by reducing the interest rate by 25 basis points to 6% at their upcoming meeting on Wednesday, as a response to easing inflation and slowing GDP growth amid the uncertainty of global trade. The Nifty 50 index saw a decrease of 3.9%, slipping below 22,100, with significant declines observed in companies such as Tata Motors (-10.0%), Tata Steel (-9.2%), HCL Tech (-6.7%), JSW Steel (-6.5%), Larsen & Toubro (-5.7%), Tech Mahindra (-5.2%), and TCS (-5.0%).