Indian stock market benchmark indices — the Sensex and Nifty 50 — witnessed a sharp decline on Monday, mirroring a global sell-off triggered by escalating fears of a recession in the United States. The concerns stem from mounting trade tensions, following a fresh round of reciprocal tariffs imposed by US President Donald Trump, fueling fears of a prolonged global trade war.
As of April 7, both the Sensex and Nifty 50 were trading nearly 4% lower. The broader markets bore the brunt of the sell-off, with the Nifty Smallcap 100 and Nifty Midcap 100 indices plunging over 5% each.
The sharp correction across global equity markets has revived memories of ‘Black Monday’ — October 19, 1987 — which is widely considered the first modern global financial crisis.
Pranay Aggarwal – Director & CEO of Stoxkart, said that while today’s Black Monday has shaken Indian markets, investors and traders must stay calm.
“Investors should avoid panic selling, continue SIPs, and consider buying quality stocks at discounted prices. Review portfolios and maintain diversification. Traders must prioritize capital preservation, stick to their trading plans, and avoid overtrading. Volatility brings opportunity, but only with strong risk management. Use proper stop-losses and position sizing. Monitor global cues like the US markets and crude. Remember, ‘This too shall pass’,” said Aggarwal, while advising to focus on process over profit, and staying disciplined and strategic.
According to Sandeep Pandey, Founder of Basav Capital, the global markets, which are falling due to the recession fear fueled by the US President Donald Trump’s tariffs, are expecting a sharp rise in inflation, which will be beyond the central bank’s control.
“This is expected to put pressure on growth and liquidity in the market — a situation, which may hit the morale of bulls, forcing them to shy away from the market for long. So, the market is expected to remain an ideal ‘sell on rise’ for bears. In this Black Monday market sell-off, one thing has become sure that recovery in one’s portfolio will take time as no one is sure about the bottom of the current falling markets,” Pandey said.
So, he recommends to remain vigilant about the quality large-cap and mid-cap stocks and accumulate when the market snaps losing streak at regular intervals.
Amid the stock market crash today, Pandey has recommended top 5 stocks to buy in the large-cap and mid-cap segments.
Here are Top Investment Ideas to accumulate in this market fall:
Large-Cap Stocks to Buy
1. ICICI Bank
4. Hindustan Petroleum Corporation Ltd (HPCL) / InterGlobe Aviation (Indigo)
Mid-Cap Stocks to Buy
3. Amber Enterprises India / Dixon Technologies (India)
5. Max Healthcare Institute
Technicals
On the technical front, the benchmark Nifty 50 index has slipped below the 22,000 level and hit an intraday low of 21,743.65 on Monday.
“Nifty 50 may retest the 21,500 mark, and a decisive break below this level could open the door for further downside towards 21,000. On the upside, resistance is expected near 22,800, where fresh short positions could be considered,” said Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
