The first trading day of the week proved disastrous for Indian markets, as Monday turned into a “Black Monday” following negative cues from the United States. Indian stock markets opened with a sharp fall of 4–5%, leading to a massive loss of over Rs 16 lakh crore in a single session. This marks the biggest single-day decline since June 2024. About 82% of stocks ended the day in the red. The India VIX, which indicates market fear and volatility, surged by 66%, reflecting an atmosphere of intense uncertainty and panic among investors.
In today’s DNA, Zee news analysed the global trends and brought some suggestions to keep the investors in control.
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Global markets have also taken a hit due to the escalating tariff war between the United States and China, sparking widespread fears of an impending global recession. The impact of this fear was evident as Hong Kong’s market plunged 13%, the steepest drop since 1992. European markets fell to their lowest levels since January 2024.
Crude oil prices slumped to a three-year low, now trading at $60 per barrel. Meanwhile, international gold prices have dropped to a three-week low.
Global financial institutions have raised alarms. U.S.-based Goldman Sachs has increased the probability of a recession in the U.S. from 20% to 45%, while JP Morgan has raised global recession estimates to 60%.
If the U.S.-China tariff war continues and a global recession sets in, India may not remain unaffected. According to NASSCOM, over 5.1 million people are employed in India’s IT sector, which earns 40–60% of its revenue from the U.S. A slowdown in the U.S. could significantly impact demand, potentially triggering large-scale layoffs in the Indian IT industry.
The textile sector, India’s second-largest employer, could also be affected. India is the third-largest textile supplier to the U.S. after China and Vietnam. A drop in demand due to tariffs and a U.S. recession could lead to reduced employment opportunities or job cuts in this sector.
The chemical sector, which contributes 18% to India’s total exports to the U.S., is also expected to come under pressure, possibly leading to job losses.
The situation is more concerning because industries like textile and chemicals are largely unorganized, dominated by small-scale businesses. Any major hit to these sectors could rapidly deteriorate the economic environment in India.
With uncertainty looming, here are a few financial precautions being advised:
* Avoid unnecessary spending.
* Cut down on dining out.
* Prioritize saving as much as possible.
* Cancel vacation plans, especially for the upcoming summer holidays.
* Limit credit card usage.
* Avoid taking personal loans for now.
* Postpone any major purchases like buying a house or car unless absolutely necessary.
With financial storm clouds gathering, experts continue to urge caution and preparedness for the months ahead.