Sensex Crashes 1,069 Points: Nifty Dives Below 25,450 as IT Stocks Tank – Crypto Emerges as Safe Haven Amid Global Turmoil

Indian Markets in Red: A Sharp Sell-Off Wipes Out Billions

Indian stock markets faced a brutal day as the . Heavy selling in IT, auto, and bank stocks pulled down the benchmark indices. The BSE Sensex closed over 1,000 points lower, while Nifty 50 slipped sharply under the key 25,500 level. This steep drop erased Rs 2.85 lakh crore from investor wealth, bringing total BSE market cap to around Rs 466 lakh crore.

TechM and HCL Tech led the losses, each dropping 6%. Other IT heavyweights also faced pressure amid global uncertainties. Markets opened weak, with Nifty falling over 1% early on. Analysts see strong support at 25,200, matching the 200-day moving average and a major retracement level.

Global Triggers: Trump Tariffs, Dollar Weakness, and AI Fears

The downturn wasn’t isolated to India. Global markets echoed the pain. Citigroup noted its hedge fund clients sold the US dollar heavily around Friday’s US Supreme Court ruling on President Trump’s tariffs. The dollar tumbled in wild trading after the court struck down tariffs based on a national emergency law.

“Citi’s hedge fund clients were net USD sellers around and after the tariff ruling,” said Kristjan Kasikov, global head of Citi FX Quant Investor Solutions. The Australian dollar topped buys among major pairs.

Trump rolled out a new 10% tariff on non-exempt imports starting Tuesday, lower than the promised 15%. The UK negotiated a matching 10% rate last year. FTSE 100 dipped 0.1%, while FTSE 250 edged up 0.07%. Investors worried about tariff trade wars and AI’s hit on earnings.

Asian shares fell at open, hit by AI concerns after Wall Street’s weak close. China and Japan markets reopened to tariff jitters. Trump warned nations against backing out of trade deals post-ruling. Wall Street dropped sharply Monday on AI disruption fears and tariff fallout.

Key Stocks in Spotlight Today

• IDFC First Bank: News flows keep it in focus.
• Hindustan Zinc: Sector updates drive interest.
• BPCL: Energy plays amid volatility.
• Bharti Airtel: Telecom giant eyes 5G growth.
• Waaree Energies: Renewable energy buzz.

Bank Nifty outperformed despite broader weakness, hinting at stock-specific moves ahead.

Retail Trap: Overseas ETFs Trading at Huge Premiums

Retail investors chase global returns, pouring cash into overseas mutual funds and ETFs. But many overlook risks: some ETFs trade at 20-25% premiums to net asset values. A sentiment shift could spark sharp corrections, burning chasers of recent winners.

Crypto’s Resilience: Why Blockchain Shines in Stock Chaos

While traditional markets reel from tariffs and AI scares, crypto markets show strength. Bitcoin held steady above $60,000, acting as a hedge against fiat weakness and trade wars. The dollar’s slump boosts crypto appeal as a store of value.

Trump’s pro-crypto stance adds tailwinds. His tariff moves could raise costs for mining hardware imports, but US-based blockchain firms benefit from ‘America First’ policies. Ethereum and altcoins dip less than stocks, drawing risk-averse capital.

AI worries disrupt tech stocks like TechM and HCL Tech, but blockchain thrives on AI integration. DeFi platforms use AI for trading bots, NFTs leverage generative AI. Crypto offers diversification when Sensex crashes.

Investment Tips for Turbulent Times

1. Diversify into Crypto: Allocate 5-10% to BTC/ETH for hedges.
2. Watch Supports: Nifty at 25,200; Bitcoin $58,000.
3. Avoid Premium Traps: Check ETF NAVs before buying.
4. Focus Blockchain Stocks: Firms building Web3 tech may rebound.
5. Track Tariffs: Impacts on crypto mining gear.

Outlook: Bounce or Deeper Fall?

Short-term pain likely, but Bank Nifty strength signals rotation. Crypto bulls eye $70,000 Bitcoin if stocks weaken more. Stay vigilant on US policy shifts and AI news. In uncertain times, blockchain’s decentralization offers true resilience.

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