The announcement of tariffs by US President Donald Trump has triggered a stock market correction worldwide. BSE Sensex and Nifty50, the Indian equity benchmark indices crashed in trade on Monday. Both stock market indices plunged over 4%. At 2:33 PM, BSE Sensex was trading at 72,729.35, down 2,635 points or 3.50%. Nifty50 was at 22,051.45, down 853 points or 3.72%. The combined market capitalisation of companies listed on the BSE saw a reduction of Rs 19.4 lakh crore, bringing g the total value to Rs 383.95 lakh crore. Nationalist Congress Party (NCP) MP Supriya Sule, oiced her concerns during the Budget Session in Parliament, highlighting the urgent need for government intervention. “US tariffs are impacting our markets — and will continue to. I raised this in Parliament during the Budget Session. The Govt must act now to safeguard investors & the honest, tax-paying middle class. Don’t let them bear the burden,” she stated emphatically. Meanwhile, speculations are rife that India does not plan to retaliate against US President Donald Trump's 26 per cent tariff on imports from the Asian nation, an Indian government official said, citing ongoing talks for a deal between the countries.
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Prime Minister Narendra Modi's administration has looked into a clause of Trump's tariff order that offers a possible reprieve for trading partners who "take significant steps to remedy non-reciprocal trade arrangements", said the official, who declined to be named as the details of the talks are confidential. New Delhi sees an advantage in being one of the first nations to have started talks over a trade deal with Washington, and is better placed than Asian peers like China, Vietnam, and Indonesia, which have been hit by higher US tariffs, a second government official said, also declining to be named.
In the days after Trump's tariff announcement that has shaken global markets to their core, India joined nations like Taiwan and Indonesia in ruling out counter tariffs, even as the European Commission prepares to hit US products with extra duties following China's retaliation. India and the US agreed in February to clinch an early trade deal by autumn 2025 to resolve their standoff on tariffs. Modi's administration has taken a number of steps to win over Trump, including lowering tariffs on high-end bikes and bourbon, and dropping a tax on digital services that affected U.S. tech giants. The Nifty Microcap 250 Index was the index which fell the most among the broader Nifty indices. It was down 5.82%, reaching 19,243.90.