The Indian stock market witnessed a massive crash on April 7, 2025, as the Sensex opened with a staggering 3,000-point drop, while the Nifty fell below the 21,800 mark. This sharp decline wiped out investor wealth worth ₹19 lakh crore, marking one of the steepest market falls in recent times.
The crash was triggered by a global selloff fueled by escalating trade tensions and growing fears of a recession in the United States. At 9:16 AM, the Sensex plunged 3,072 points, or 4.09%, to 72,296, while the Nifty50 tumbled 1,146 points, or 5%, to 21,758. All major sectoral indices were in the red, with Nifty Metal sinking 8% and Nifty IT sliding over 7%.
Broader markets also faced significant losses, with small-cap stocks tumbling 10% and mid-caps registering a 7.3% decline. The market capitalization of all listed companies on the BSE dropped to ₹383.95 lakh crore from ₹403.34 lakh crore in the previous session.
The crash mirrored global market trends, as major indices in Asia and the U.S. also suffered heavy losses. Japan’s Nikkei fell 7%, South Korea’s Kospi dropped 5%, and the Hang Seng index slumped over 10.5%. In the U.S., the Nasdaq officially entered a bear market, falling more than 20% from its recent peak.
This market turmoil has raised concerns among investors, with many seeking refuge in safer assets like government bonds. The crash underscores the fragility of global markets amid geopolitical tensions and economic uncertainties.