Black Monday Melts Down Nifty Metal; Tata Steel, Vedanta, SAIL, NMDC, Hindalco, Lead the Slump

Black Monday Market Crash: The unprecedented stock market crash on Monday extended the losses of metal stocks. Shares of top Nifty Metal companies, including Tata Steel, Vedanta, SAIL, NMDC, Hindalco, Hindustan Copper, Lloyds Metals and Energy, etc were down nearly 6% on Monday, April 7.

Apart from Nifty Metal, nearly all the sectoral indices were trading in the red after Nifty 50 opened the trading session with a loss of nearly 4.6%. The benchmark index was trading in the red after opening at 21814.3 points. BSE Sensex tanked nearly 4.6% to 71893 points. All the broad market indices were in the red.

Nifty Metal Stocks in Red

The Nifty Metal index was down nearly 7.4% on Monday. Tata Steel shares tanked more than 9%, whereas Vedanta Limited shares were trading nearly 7.72% lower at Rs 370.45 per share on NSE on Monday. SAIL, NMDC, and JSW Steel shares were trading lower by 7.35%, 7.25% and 6.78%, respectively.

The Indian stock market crash has come hours after other South Asian market crashed amid continued panic selling, apparently led Donald Trump's tariffs announcement on April 2.

Black Monday: Stock Market Crash Today

Nifty and Sensex hit their March low levels on Monday, indicating a turbulent start of the week. All the broad market indices were trading in red, including Nifty small-cap falling by more than 5.8% and Nifty mid-cap 150 falling by more than 4.5% during the early trading hours on Monday.

Black Monday: Stock Market Crash Causes Panic, What Should Investors Keep in Mind?

While the stock markets are crashing not just in India but across the world, including Japan, China and the United States, experts advise investors to not panic and focus on long-term developments related to Donald Trump's trade tariffs and India's reaction to US tariffs.

"Globally markets are going through heightened volatility caused by extreme uncertainty. No one has a clue about how this turbulence caused by Trump tariffs will evolve. Wait and watch would be the best strategy in this turbulent phase of the market. There are a few things that investors should keep in mind. One, the irrational Trump tariffs will not continue for long. Two, India is relatively better placed since India's exports to the US as percentage of GDP is only around 2 percent and therefore the impact on India's growth will not be significant. Three, India is negotiating a Bilateral Trade Agreement with the US and this is likely to be successful resulting in lower tariffs for India," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

"Domestic consumption themes like financials, aviation, hotels, select autos, cement , defence and digital platform companies are likely to come out relatively unscathed from the ongoing crisis. Trump is unlikely to impose tariffs on pharmaceuticals since he is on the back foot now and, therefore, this segment is likely to show resilience," he added.

While the stock market crash on Monday is largely driven by global cues, stock market investors will keenly observe developments around RBI monetary policy committee announcement, set to be made on April 9, retail inflation data and trends in the company's earnings starting this week.