Stock market crash: We are pretty much in a state of turmoil, say experts as NIFTY50 drops below 22,000

Monday market crash: The Indian equity benchmarks came crashing on Monday, April 7, with the SENSEX crashing as much as 3,939 points and the NIFTY50 index dropping over 1,000 points to hit an intraday low of 21,743.65, mirroring losses in global markets. Fears of recession in the global economy after President Donald Trump embarked on a trade war continue to fuel a global stock market rout.

President Donald Trump's new tariffs are "larger than expected", and the economic impact on inflation and growth will be likely, Federal Reserve Chair Jerome Powell said on Friday, flagging an uncertain outlook for the US economy, according to news agency Reuters. _ Here's what experts say about Monday's market rout:_

Ajay Bodke, independent market analyst

I think investors should let the dust settle. A long-term investor with asset allocation goals should let the panic subside. The genesis of the current crisis is global, and it is impossible for a fund manager to factor in the ongoing picture. Right now those with the leveraged positions are in trouble, and markets can continue to slide for a few sessions.

K. Subramanyam, co-head, Altamount Capital

We are pretty much in a state of turmoil. India is taking a mature position by negotiating. Going ahead, corporate earnings will be crucial. For India, crude oil prices have crashed, which is a good sign, and expectations of a rate cut by the Reserve Bank of India in the range of 25-50 bps should give a good boost to consumption.

Despite the correction, valuations are still stretched in some sectors, and the markets are likely to take the next two quarters to settle.

Arvind Kothari, Founder, Niveshaay

Markets are reacting to tariff-related concerns and global uncertainties, yet these periods of volatility have always tested — and ultimately rewarded — long-term conviction. Panic is rarely a strategy — staying anchored to fundamentals is key. We urge investors to remain calm and focused, avoiding impulsive decisions driven by short-term noise. While it's difficult to pinpoint which sectors will rebound first, but domestic-focused areas like FMCG and Consumption appear better placed in the near term. Export-heavy or globally linked sectors may take longer, with clarity emerging over time. Periods like these often pave the way for the next growth cycle. As clarity improves, staying invested in fundamentally strong businesses are likely to lead the recovery and create long-term value".

Robin Arya, founder & CEO at GoalFi

This year, tariffs have re-emerged as a major wild card, shaking global confidence and rattling equity markets. With the US pushing effective tariffs to 20–25%, the ripple effects are visible from IT stocks in India to investor sentiment worldwide. Such macro shocks create near-term volatility, but they don’t change the long-term fundamentals of well-run businesses. We expect domestic-facing sectors like Financials, FMCG, and Infrastructure to rebound faster, given their lower global dependency and continued structural tailwinds in India. In volatile markets, headlines may dominate, but fundamentals ultimately prevail. At GoalFi, our multi-factor strategies help navigate such uncertainty by balancing alpha generation with quality and resilience. For investors, this is the time to review, not retreat - to stay diversified and aligned with your financial goals. Markets may be uncertain, but your strategy doesn’t have to be.

Karthick Jonagadla, founder, Quantace Research

Investor sentiment took a significant hit following President Trump’s imposition of a 26% reciprocal tariff, with IT stocks bearing the brunt of the impact. This development underscores heightened market concerns. Currently, the Nifty trades around 22,000 at a trailing P/E of 20—levels reminiscent of when the index was approximately 16,300 in mid-2022, after a 35% rally from previous lows. We believe that Private Banks, FMCG, OMCs, and Paints will lead the recovery, while the IT sector is expected to lag.