By laksh5382 
Dalal Street saw its worst opening since March 2020, marking the onset of a one -month long epidemic lockdown in India. After 5% low opening, the Nifty and Sensx traded 3% on Monday at 3% on the first day, their worst show since June 4, 2024.
There was no place to hide: all the regional index of BSE fell. The damage was not limited to the frontline. The mid-cap and small-cap index of NSE fell a sharp 4%, which reflects wide market pain. On NSE where more than 3,000 companies are listed, a shocking 645 hit 52-week climbing. For every stock that increased, eight fell. Before closing 53% more, the market fear index exceeded 65% during the session.
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Nilesh Shah, managing director of Kotak Mahindra AMC, said, “The decline of the last few days in the market is definitely giving a flashback of Kovid days.” However, he reported that Indian markets have not reacted rapidly like some other markets including the US.
The Asian markets with Hong Kong’s Hong Seng index have fallen by 13%, the worst since the Asian financial crisis almost three decades ago. This was followed by Taiwan’s Taix that fell 10%, Nikkei (8%) of Japan, CSI 300 (7%) of the mainland China, and Korea (6%) of South Korea, a picture of widespread nervousness in the entire region. The Nifty finished the session at 3.2% lower at 22,161.60, while the sensex slipped from 2.9% to 73,137.90.
In Europe, the Euro Stockx 50, representing the top blue-chip companies in 11 eurosone countries, slipped 4%. Meanwhile, the US Dow Futures dropped nearly 700 points, showing that the pain is not yet over. Investors recalled Black Mande – 19 October 1987, when Dow Jones Industrial Average triggered a global recession in the same season, declining around 23%.
Unlike 1987, when India was shifted from its limited global risk, it is no longer on the edge. While the Indian economy is not heavy export-oriented, it is not completely untouched, Hari Shyamsander, Vice President and Senior Institutional Portfolio Manager, Emerging Markets Equity, India, Franklin Templeton. “It is exposed to the effects of another order from a possible global development recession and increased geopolitical stress.”
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Shaymsunder reported that if the tariff is applied and performed continuously, it can give rise to high prices for American consumers, disrupt global supply chains, and weigh weighing on corporate capital expenditure. He said that a global development recession, a weak investment cycle, increase in business tension, and widespread risk in equity would harm Indian shares. For India, about 21.4% of GDP was exported in FY24.
The rupee fell 60 money or 0.7% to 85.8350 per dollar, its worst day since 13 January. Most Asian currencies decreased, falling 0.2–1.2% against the dollar amidst market pressure.
For Nifty, the next important level to see the 21,800 mark is, Kakunal Parr said, Vice President of Choice Equity Broking. He said, “If the index manages to capture this level in the next two sessions, the market may achieve some position. But a violation can open during the flood for a faster improvement,” he warned.
According to Shah of Kotak, improvements of the last few months can also be a reason that Indian shares have not reacted negatively like others, as the existing levels of valuation are appropriate.
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Bloomberg’s data showed that the evaluation of the Indian market has immersed below the long -term average. The P/E ratio of the Nifty 50 is now at 18.1x and the senses at 19.49x, both below their 20-year average of 20.83x and 19.68x, respectively, indicating that the market may move towards sanctity.
Although some investors may be wooed to get out of equity amid growing uncertainty, Swarup Anand Mohanty, Vice-Chairman and CEO of Mirae Asset Investment Managers (India), see it as a window of the opportunity to bow down and do not draw it. While the Indian market has performed better than others, overwell pockets remain, and any bad news can prevent one selling, Mohanty said. Nevertheless, he advises that he does not take a dip.
Despite the sharp decline, Indian equity is not yet a deal, but Mohanty believes that India is getting closer. He sees as a year to accumulate 2025, not chase returns.
BSE data showed that FII removed Indian equity 9,040 crores on Monday, while DIIS stepped with net procurement 12,122 crores, provide some cushions to sell.
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Mohanty said, “India remains a development story in a world full of crisis,” it is important to add currency stability for foreign investors. He believes that this is a moment of working for domestic investors-because once Fiis enters the market again, the initial benefits may already be away from the table.
Shah believes that investors will use this phase to carry forward riblance portfolio and equity allocation, which is likely to increase speed in the coming weeks. He said, “We will also expect that equity is being allocated in the coming months because the current instability resides and the shape of bilateral trade agreements becomes clear between us and other countries,” he said.
Angel One President and MD Dinesh Thakkar said that the phone was “resonating” in his firm with retail investors whether it was the right time to “buy”, but the distributor of Myura Money, the south-based distributor, Mira Money co-founder Anand. Rathi claimed that there was a significant redemption by investors in direct schemes.
Direct plans allow an investor to invest directly in units of mutual funds without an intermediary, reducing the cost of transactions. It is introduced by new age online brokerage. Against this, investors in regular plans invest through a distributor, broker or banker who receives distribution fee from AMC.
In addition, retail investors who borrow from brokers face margin calls from brokers on Monday to invest in shares directly.
The investor’s focus will soon be transferred to the comments of Reserve Bank of India in the upcoming monetary policy meeting. By adding it, the march quarter -earning season will be another important trigger on the radar. The attention will also be towards the American Federal Reserve, which is ready to hold a closed door meeting on Monday morning, making speculation about the next step of the Central Bank among the growing global gitlers. If the fed proceeds with a rate cut and finishs in green in American markets, then there is a proper chance that Indian markets can see a snapback on Tuesday.
(Input from Ram Sahgal and Srishati Vaidya)