Sensex Plunges 2500 Points Amid Global Sell-Off Triggered by US-China Trade Tensions

Market expert Sunil Shah links the Sensex crash to Friday’s US market dip after China imposed tariffs, warning of global economic slowdown risks.

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Sumit Kumar
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By A Staff Reporter

Mumbai | Indian markets opened sharply lower on Monday, with the Sensex plunging by over 2500 points, reflecting widespread investor panic triggered by escalating US-China trade tensions. The fall follows a global sell-off sparked by China’s announcement on Friday of more than 30 new tariffs on US imports—a retaliatory move that sent shockwaves through financial markets.

Market expert Sunil Shah said the sharp correction was anticipated after the US markets closed 2200 points lower on Friday in response to China’s move. “It was expected that on Monday, when the Asian and other global markets opened, they would react with a significant gap down—and that’s exactly what happened,” Shah explained.

He attributed the downturn to growing fears of a prolonged trade war, which investors believe could destabilize global economic growth. “In a trade war, no one truly wins. It’s inflationary across the board and contributes to slowing down global GDP growth,” he added.