Why is the Share Market Down Today - 6 Key Reasons

On Monday, 7th April 2025, the stock market saw a huge decline in the indices, replicating the global market trend. Due to the recent event of the U.S. imposing reciprocal tariffs across nations, sentiment has turned negative, with the NSE Nifty 50 Index down up to 4.7% and hovering below 21,750. Asia’s major indices, like Japan’s Nikkei and China’s Shanghai Composite Index, are both down by around 7%; Hong Kong’s Hang Seng is down by 13%; and Singapore’s SGX Index is down by ~8%. Further, India VIX shot up by ~60% on the index fall and overall market uncertainty. 

Six Reasons for the Market Fall Today – Monday, 14 April

Here is the reason for the market fall today, Monday, 14th April 2025.

1) Global Markets Decline

On Monday, Global markets are in turmoil as U.S. indices like the S&P and Nasdaq plummeted on Friday, impacting Asian markets. The Nikkei, Shanghai Composite, and Hang Seng indices fell sharply on Monday due to escalating trade tensions and retaliatory tariffs between the U.S. and China. Furthermore, Donald Trump said on Sunday that foreign governments would have to pay “a lot of money” to lift tariffs, thus pushing markets to downfall, as per various sources.

2) U.S. Tariff Impact

Recently imposed reciprocal tariffs by the U.S. President Donald Trump have impacted the stock market by creating uncertainty in global markets, and it can cause disruption in supply chains and prompt retaliatory measures from other countries. 

 3) China and EU Retaliation to U.S. Tariffs

In response to the 54% tariff imposed by the U.S. on China. They have announced a 34% tariff on all U.S. imports starting April 10, 2025, targeting goods like coal, crude oil, and agricultural machinery. The EU has plans to impose counter-tariffs on U.S. products during trade disputes.

4) Recession Fears in the U.S.

The Recession fears in the U.S. have increased following Trump's tariffs. Globally renowned banks such as JPMorgan predict a 60% recession likelihood, while Goldman Sachs notes a potential 2% to 3% impact on corporate earnings for US companies.

 5) Commodity Market Declines

The crude oil prices (Brent crude down ~3%) have fallen due to escalating US-China trade tensions while raising recession fears and lowering demand outlook. The metal price outlook impacted the Nifty Metal Index, which is down by ~8.6%, influenced by the tariffs and global economic slowdown. Gold and Silver saw a decline amidst broader market volatility.

6) Focus on Indian Corporate Earnings & RBI Policy Stance

Before the Reserve Bank of India's April 9th, 2025, policy announcement, markets are skeptical. Previously, there were expectations that the RBI would lower interest rates to help the economy grow, but with the imposition of US tariffs, the decisions from the central bank are closely watched. The Q4FY25 quarter company earnings are set to begin this week. TCS, part of the Tata Group, will release its fourth-quarter results on April 10th, 2025. The investors are looking forward to TCS's commentary during the upcoming earnings call, as per various sources.