Trump tariffs effect: Rs 29 lakh crore gone as Sensex plunges 4,000 pts since 'Liberation Day'

Sensex has lost 4,000 pts since US President Donald Trump announced a slew of 'reciprocal' tariffs on trading partners. Trump had pegged April 2 as "Liberation Day", when imposed an array of new tariffs that have intensified the trade war with the country's trading partners and pushed the global economy to the brink of recession. 

Sensex, which closed at 76, 617 on April 2 slipped to 72,263 in the current session. The index has been on a slide since Trump announced tariffs on April 2. Similarly, Nifty has crashed 1298 points during the same period. It slipped to 22,034 today against the April 2 close of 23,332. 

Meanwhile, investor wealth slipped by Rs 29 lakh crore to Rs 383.95 lakh crore today against Rs 412.98 lakh crore on April 2.

Shrikant Chouhan, Head Equity Research, Kotak Securities said, "After a sharp correction, we believe the market is trading near the 20-day and 50-day Simple Moving Averages (SMAs). The short-term outlook indicates that if the market reclaims the 23,000/75800 mark, we could see a pullback rally reaching up to 23,250-23,325/76500-76800. Conversely, selling is likely to continue as long as the market remains below the 23,000/75800 level. Further downside may persist, potentially dragging the index down to 22,350-22000-21800/74000-73000-72400."

When it comes to US markets, NASDAQ Composite Index has lost 2,000 points since April 2. The index closed 962 points lower at 15,587 on Friday (April 4).

Dow Jones Industrial Average plunged 2,231 points or 5.50% to 38,314 on Friday. In the last two sessions, the Dow Jones has lost 3,911 points. 

S&P 500 index closed 322 points lower at 5074 in the previous session. The index is down 596 pts in since Trump's liberation day speech. 

On Dalal Street, investors lost Rs 19.38  lakh crore to Rs 383.95 lakh crore today against Rs 403.34 lakh crore in the previous session.  Sensex tanked 3,000 points to 72,329 and Nifty tumbled 971 pts to 21,932 on Monday. 

On the outlook of Indian market, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "Markets are going through heightened uncertainty, which is likely to last some time. A trade war has been triggered by Trump and retaliatory tariffs from China, EU and others are on the cards. This will only extend the period of uncertainty and confusion in the market. It appears that contraction in global trade and decline in global growth are inevitable in the present context. Decline in global growth will impact India’s growth, too, even though we might do better than other large economies."