Monday’s market rout slashed India’s market capitalisation (mcap) by Rs 14 trillion (over $160 billion), bringing it to Rs 389.3 trillion ($4.54 trillion).
This marked the largest single-day decline in mcap in eight months, with the closing value hitting its lowest point since March 4.
Gold Rate
11 April 2025
The wealth destruction is on account of fears that the tariffs imposed by US President Donald Trump would upend global trade, slow global growth and push the US economy into recession.
While Mondays erosion was among the highest for a single-day post Covid, it is still modest given the scale of fall in global markets.
During the last three trading sessions, the world market has declined by $9 trillion to $113.7, primarily led by the US.
World markets are still coming to terms with the new global tariff war. It is still not clear how the global business environment will evolve over the next few months and who will suffer and who will benefit. This uncertainty is increasing the risk premiums in the market. As the story plays out over the next few weeks, we expect markets to stabilise and clear winners and losers will emerge, said Bino Pathiparampil, head of research, Elara Capital.
Since its recent high of Rs 418 trillion on March 24, India’s mcap has fallen by Rs 29 trillion. Compared to its all-time peak of Rs 478 trillion on September 27, the mcap has dropped by nearly Rs 89 trillion.
In dollar terms, Indias mcap has seen an erosion of over $1 trillion from the peak.
On Monday, the top eight business groups in the country saw their combined market value decrease by Rs 4.1 trillion, with the Tata group leading the losses at nearly Rs 1 trillion.
The market value of the Mukesh Ambani-led Reliance group fell by almost Rs 60,000 crore to Rs 17.4 trillion, while Adani group firms also declined by almost half a trillion rupees to Rs 12 trillion.
Since September, the top eight business groups have shed Rs 22 trillion, accounting for a fourth of the total mcap losses from the peak.
