FEAR STALKS STREET SHOW

Escalating tariff war spooks investors; Indian stocks close 3% lower while Asian peers fare worse; Hong Kong stocks fall the worst since 1997

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Shockwaves from Washington jolted stocks from Tokyo to London on Monday, erasing nearly 14 trillion of India's investor wealth as the world panicked about the unfolding tariff war resulting in a full-blown slowdown.

Dalal Street witnessed its worst opening since March 2020, which marked the start of a months-long pandemic lockdown in India.

After a 5% lower opening, the Nifty and Sensex on Monday traded in the red throughout the day before settling 3% lower, their worst show since 4 June 2024.

There was no place to hide: All of BSE's sectoral indices fell. The damage wasn't limited to the frontlines either. The NSE's midand small-cap indices fell a sharper 4%, illustrating the pain in the broader market.

On the NSE where over 3,000 companies are listed, a staggering 645 hit 52-week lows. For every stock that rose, eight fell. The market's fear index shot up over 65% during the session before closing 53% higher.

"The last couple of days' fall in the market is certainly giving one flashbacks of Covid days," said Nilesh Shah, managing director, Kotak Mahindra AMC. However, he pointed out that Indian markets haven't reacted as sharply as some of the other markets, including the US.

Asian markets cratered, with Hong Kong's Hang Seng index plunging 13%, its worst since the Asian financial crisis nearly three decades ago. This was followed by Taiwan's Taiex which fell 10%, Japan's Nikkei (8%), Mainland China's CSI 300 (7%), and South Korea's Kospi (6%), painting a picture of widespread panic across the region. The Nifty ended the session 3.2% lower at 22,161.60, while the Sensex slid 2.9% to 73,137.90.