Realty Stocks Plunge as Global Trade War Fears Mount Following US Tariff Hikes:

Indian real estate stocks nosedived on April 7, mirroring global market unease after US President Donald Trump imposed a new wave of reciprocal tariffs. The development sparked concerns of a looming recession and inflation, leading to a sell-off across sectors — with realty taking a major hit.

The Nifty Realty index dropped by nearly 6%, closing at 776, as fears of a global economic slowdown loomed large.

Top Losers: Anant Raj, Sobha, DLF, and Godrej Properties

Among the worst-hit realty stocks:

Anant Raj fell nearly 8%

Sobha closed over 7% lower

DLF and Godrej Properties, both heavyweights in the sector, ended the session down 7%

Other real estate firms that suffered significant losses included:

Macrotech Developers

Prestige Estates

Brigade Enterprises

Oberoi Realty

Raymond

Phoenix Mills

Expert View: Spillover Effect from Global Turmoil

Abhishek Jaiswal, Fund Manager at Finavenue, attributed the sharp market correction to external shocks rather than domestic fundamentals.

"The US tariffs are part of a broader global strategy, not aimed specifically at India. However, the ripple effects—such as rising inflation, broken supply chains, and recessionary risks—are enough to shake global markets, including ours."

Vipul Bhowar from Waterfield Advisor added:

"These global uncertainties may affect India's projected GDP growth. How Indian policymakers, corporations, and financial institutions respond will be crucial in mitigating potential damage."

Real Estate Sector Vulnerable to Economic Downturn

Historically, the real estate industry has been one of the first to feel the pressure during economic slowdowns. With global recession fears rising, experts warn of potential reduced consumer spending, delayed investments, and slower project completions, especially in urban and premium segments.

What’s Next?

While India’s direct export exposure to the US remains limited, the fear of a wider economic contagion is unsettling investor confidence. Market watchers are now closely monitoring the Indian government’s fiscal and monetary responses, particularly in light of its ambitious GDP growth targets for FY25.