'If you're a first-time investor...': Edelweiss CEO shares 2008 flashback after Sensex tanks 2,226 points

Edelweiss Mutual Fund CEO Radhika Gupta drew from her early Wall Street years to share a message for new investors on a day when the Indian stock market recorded its steepest single-day fall in 10 months. As the Sensex and Nifty tumbled sharply amid global market turmoil, Gupta urged first-time investors to focus on staying the course and learning from the experience.

"My first market correction was 2008, as young Wall Street analyst. Asset classes were imploding in ways books never taught, banks that had been top campus recruiters were collapsing, and some bank stocks were below $5. Layoffs were the norm across the street. It felt dramatic,” she wrote on X.

"2013 felt a bit easier, 2018 even more, and five years ago, I could see sanity even in 2020. TIME makes you a better investor. If you're a first time one, focus on surviving and living to learn from the lessons.”

Gupta's post came after the BSE Sensex crashed 2,226.79 points or 2.95 per cent to close at 73,137.90, while the NSE Nifty fell 742.85 points or 3.24 per cent to end at 22,161.60 — their worst single-day performance since June 2024.

During intra-day trade, the Sensex slumped 3,939.68 points (5.22%) to 71,425.01, and the Nifty fell 1,160.8 points (5.06%) to 21,743.65. The meltdown was triggered by fears that US President Donald Trump’s reciprocal tariffs, and China’s retaliatory duties of 34 per cent on American goods, could spark a global recession.

“All global equity indices fell like a pack of cards,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. “Commodity prices of crude oil and metals are already sliding, pointing to a slackening in demand.”

Siddhartha Khemka of Motilal Oswal noted that the Nifty 50 opened with its sharpest fall since the COVID-led crash of March 2020. Despite a partial recovery later in the session, every major sector on the BSE ended in the red. Metals plunged 6.22 per cent, realty fell 5.69 per cent, and banks, IT, auto, and consumer discretionary stocks all saw steep losses.

Tata Steel led the Sensex losers with a 7.73 per cent fall, followed by L&T, Tata Motors, Kotak Mahindra Bank, Infosys, and HDFC Bank. Hindustan Unilever was the only stock to end in the green.

The rout followed sharp declines in global markets. Hong Kong’s Hang Seng dropped over 13 per cent, Tokyo’s Nikkei 225 fell nearly 8 per cent, Shanghai’s SSE Composite shed more than 7 per cent, and South Korea’s Kospi lost over 5 per cent. European markets fell over 4 per cent, while U.S. indices had already closed sharply lower on Friday.

“Global markets reeled as US President Donald Trump unleashed a fresh wave of tariffs, calling it 'Liberation Day',” said Vikram Kasat, Head – Advisory, PL Capital. “For now, markets may remain on edge as global uncertainties continue to weigh on risk appetite.”