Special Correspondent
Mumbai : In one of the most turbulent trading sessions in recent memory, Indian stock markets witnessed a dramatic collapse and partial recovery on what investors are now calling “Black Monday.” The benchmark Nifty 50 index opened with a staggering 5% gap-down, marking its steepest opening fall since the pandemic-led crash on March 23, 2020. Triggered by intensifying global recession fears, looming U.S. tariff threats on Indian goods, and mounting concerns ahead of the corporate earnings season, investor sentiment was visibly shaken.
Despite the ominous start, markets displayed unexpected resilience through the day. From a deep intraday low of 21,094, the Nifty staged an impressive recovery of over 1,160 points—the sharpest intraday swing since June 4, 2024—closing at 22,254. Although the index still ended 3.2% lower than the previous close, the sharp rebound in the final hours signaled renewed buying interest and faith in India’s long-term economic stability.
Commenting on the day’s extraordinary market action, Mr. Devarsh Vakil, Head of Prime Research at HDFC Securities, said, “Down but not out. The Indian market has shown resilience despite the storm. The intraday recovery signals investor faith in India’s economic fundamentals, even as short-term uncertainties persist.”
Throughout the session, nervous trading dominated Dalal Street, with investors reacting to a flurry of global developments. The threat of fresh trade barriers from the U.S., especially under the shadow of Trump’s return to protectionist rhetoric, stoked fears that Indian exports could face serious headwinds. Meanwhile, apprehension over a slowing global economy added to the volatility, prompting a sell-off across frontline stocks.
Trading volumes on the NSE surged by 20% compared to Friday, reflecting both panic-driven exits and opportunistic entries. The Indian rupee too felt the heat, plunging 59 paise to close at 85.83 against the U.S. dollar—a multi-week low and its sharpest single-day decline since March 21.
The mid and small-cap segments weren’t spared either. Both indices suffered deep early losses but clawed back significantly by the end of the day. The Nifty Midcap 100 bounced back over 6% from the lows but still ended down by 3.63%, while the Nifty Smallcap 100 rebounded nearly 7% intraday but closed with a 3.88% loss. The broader market remained under pressure, with the BSE advance-decline ratio plummeting to 0.19—its lowest since February 11 this year—underscoring the depth of selling across the board.
Sectorally, the pain was widespread. Every major index ended in the red, with metals, real estate, media, and auto stocks suffering the steepest declines. The pressure on economically sensitive sectors reflected both local concerns and global unease.
Despite briefly breaching the crucial swing low of 21,964 during the session, the Nifty managed to close above this level, offering a glimmer of technical support in the short term. Looking ahead, analysts believe the index may face resistance near the 22,700 mark.
Mr. Vakil remained cautiously optimistic. “Markets may continue to be volatile in the near term, but India’s structural growth story remains intact. Investors with a long-term horizon should see this as an opportunity, not a panic trigger,” he said.
While Monday’s collapse has certainly jolted investors, the recovery has offered a silver lining—one that hints at the underlying strength of India’s equity markets even amid global turbulence.
