The Indian equity market experienced volatility from April 7 to April 11, due to tariff disputes and global market fluctuations.

The market was closed on April 10, for public holiday.

Out of 32 new-age tech companies, 19 saw declines, with Brainbees Solutions, the parent company of FirstCry, dropping 8.51%.

CarTrade’s shares were volatile, initially falling over 12% but recovering 11%, ending the week down 7.90%. Ola Electric shares fell 4.29% to 50.19 rupee (US$0.58) due to regulatory concerns.

On the other hand, 13 new-age tech companies saw gains. EaseMyTrip led with a 9.17% increase to 13.09 rupee (US$0.15) after its board approved equity share allotment for acquisitions.

Other gainers included Eternal, Paytm, and PB Fintech, boosting their combined market capitalization to US$74.78 billion.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ Historical trade war patterns reveal predictable market impacts

The current market volatility mirrors similar disruptions during the 2018-2020 US-China trade conflict, demonstrating cyclical patterns in how global tensions affect Indian equities.

The previous trade war saw tariffs on $450 billion worth of trade, significantly impacting export dynamics across Asian markets 1.

This pattern has repeated with remarkable similarity, as evidenced by the $180 billion wiped from Indian markets in just two days following the latest round of tariff announcements 2.

Consistent with historical trends, metal and manufacturing sectors show the highest sensitivity to trade tensions, as seen in the current 5.6% drop in the Nifty Metal Index 2.

The market’s partial recovery after the US deferred tariffs on countries except China demonstrates how policy adjustments create stabilization windows, a pattern also observed in previous trade conflicts.

2️⃣ Beyond tariffs: Broader economic slowdown presents greater risk

While tariffs create immediate market volatility, economist Swaminathan Aiyar notes that the potential slowdown in US and Chinese economies poses a far more significant threat to India’s growth trajectory than the tariffs themselves 3.