Unshackled yet Vulnerable

Eknath Shinde’s high stakes pivot in the post-Ajit era Mumbai: The swearing-in of Sunetra Pawar as Deputy Chief Minister has optically restored the Mahayuti’s "tripod" structure, but for Eknath Shinde and his Shiv Sena faction, the ground reality has shifted seismically. The sudden exit of Ajit Pawar—often seen as the "counterweight" in the alliance—has fundamentally rewritten Shinde’s survival equation. For the last two years, Shinde operated in a high-pressure "sandwich" between Devendra...

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Eknath Shinde’s high stakes pivot in the post-Ajit era Mumbai: The swearing-in of Sunetra Pawar as Deputy Chief Minister has optically restored the Mahayuti’s "tripod" structure, but for Eknath Shinde and his Shiv Sena faction, the ground reality has shifted seismically. The sudden exit of Ajit Pawar—often seen as the "counterweight" in the alliance—has fundamentally rewritten Shinde’s survival equation. For the last two years, Shinde operated in a high-pressure "sandwich" between Devendra Fadnavis’s strategic command and Ajit Pawar’s administrative dominance. With the latter gone, Shinde is no longer just the "other" Deputy CM; he is now the operational anchor of the government, a shift that brings both immense opportunity and existential risk. Sunetra Pawar’s sudden elevation as Maharashtra’s Deputy Chief Minister after Ajit Pawar’s tragic death has also unsettled other Shiv Sena leaders, who publicly welcomed the move but privately expressed surprise and concern. The development reshapes the Mahayuti alliance, with Eknath Shinde caught between asserting his mass appeal and managing BJP’s growing dominance. Third Wheel Until last week, Eknath Shinde often found his administrative influence curtailed by Ajit Pawar’s aggressive style. Ajit "Dada" controlled the bureaucracy and the purse strings, often leaving Shinde’s MLAs complaining about stalled files and delayed funds. How the new reality would unfold is not yet clear. With Sunetra Pawar being a political novice inducted primarily for "sympathy" and "legacy" management, Shinde is now the sole experienced administrator alongside Fadnavis. The "administrative friction" that plagued Shinde’s faction is gone. In cabinet meetings and operational governance, Shinde’s voice will likely carry significantly more weight, as he is no longer competing for airtime with a heavyweight like Ajit Pawar. Finance Dilemma The decision by Chief Minister Fadnavis to retain the Finance and Planning portfolio—rather than handing it to Sunetra Pawar—is the single most critical development for the Shiv Sena. The good news is that Shinde’s MLAs will no longer have to beg an NCP Finance Minister for development funds—a major grievance that had threatened internal revolts in the Sena camp. However, it can also turn out to be the bad news, since financial power will be completely centralized within the BJP now. Previously, Shinde could subtly play the BJP and NCP against each other to extract resources. Now, he faces a monolithic BJP command center. If Fadnavis tightens the purse strings, Shinde has no "second door" to knock on. The BMC Bargaining Chip The immediate effects of Shinde’s new fears were seen in Brihanmumbai Municipal Corporation (BMC) and other Municipal Corporations in the MMR, where insteady of bargaining for a larger share of power, the Shiv Sena under Shinde appeared to be content with whatever it got from the BJP and quietly accepting it. This was very unlikely of their track record till now and contrary to the party insiders who were very aggressive till last week sending out signals that Shinde would bargain strongly for the demands like Mayoral post in Mumbai to assert the ‘rights of Marathi Manoos’.

India bears the brunt: Nifty crashes 1,100, Sensex nosedives 3,900 points after US trade shock

Correspondent
Apr 7, 2025
2 min read

India woke up to a financial jolt this morning as its equity markets suffered their steepest fall in nearly a year, shaken by the ripple effects of US President Donald Trump’s aggressive new tariff regime. The Sensex plunged over 3,900 points at opening bell, while the Nifty tumbled more than 1,100 points, dragging Indian stocks to a 10-month low.

This sharp decline follows a global equity rout triggered by Trump's protectionist measures, which have sent panic waves across Asia and raised the spectre of a global recession. Investors dumped shares in a massive sell-off, with Indian benchmarks reacting sharply in early trade. The Sensex dropped to 71,425.01 — down 3,939.68 points — while Nifty slipped to 21,743.65, marking a 3.5% slide from the last session.

Adding to the pressure, the Indian rupee depreciated 30 paise to open at 85.74 against the US dollar.

India Among the Hardest Hit

Trump’s latest tariff hike — framed as a push to restore fairness to global trade — has imposed country-specific duties that go as high as 50%. India has been slapped with a 26% tariff, while a 10% baseline duty applies to all nations. This has set alarm bells ringing among Indian exporters and traders already struggling with global demand volatility.

President Trump, unfazed by the financial carnage, likened the move to a bitter but necessary cure. “Sometimes you need the medicine to fix something,” he told reporters earlier today.

Analysts Urge Economic Safeguards

Market experts believe that India's current market turmoil isn't rooted in domestic issues but is rather a consequence of being tightly woven into global investment flows.

“India will face the heat, not due to domestic reasons, but as an interlinked chain in the global portfolio flows,” said Ajay Bagga, a noted market expert. “India will need a fiscal, monetary, and reform package to protect the domestic economy from this global economic winter that is threatening to settle in.”

Sunil Gurjar, SEBI-registered research analyst, warned that the Nifty50 index has breached its first support level and is approaching the next. "A further breakdown could worsen the trend and accelerate the fall," he cautioned.

Asian Markets Bleed

The tremors from Trump's announcement were first felt in Asia, with key markets suffering steep losses. China's stock markets fell over 4% amid retaliatory tariffs of 34% against the US. Hong Kong's Hang Seng nosedived more than 10%, while Japan’s Nikkei index fell 6.5% after plunging 8% earlier in the day. Taiwan saw a near-10% collapse, and Singapore dropped over 8%.

Wall Street Braces for Impact

US markets, though yet to open, appear set for a rough start. Futures contracts on the New York Stock Exchange are sharply down, suggesting heavy losses once trading resumes.

Market sentiment globally has turned bearish, with fears of a looming recession taking hold. Stephen Innes of SPI Asset Management described the scene as “free-fall mode,” noting, “Trump’s team isn’t blinking. The tariffs are being treated as a victory lap, not a bargaining chip.”