Mumbai (Maharashtra) [India]: Indian stock markets opened with significant selling pressure on Thursday, mirroring a global downturn triggered by former US President Donald Trump’s latest tariff announcement. Investors reacted negatively, leading to a sharp drop in key indices at market opening.
Market Opening Highlights:
- BSE Sensex plunged over 800 points, opening at 75,811.12, a 1.05% decline.
- NSE Nifty 50 dropped by 182.05 points, opening at 23,150.30, down 0.78%.
Experts Attribute Decline to Tariffs and Safe-Haven Investments
Market analysts pointed to Trump’s reciprocal tariff policy as a major driver of the sell-off, causing investors to shift funds to safer assets like gold, the Japanese yen, and Swiss francs.
Ajay Bagga, a banking and market expert, explained:
“The impact on India will come via the US dollar, economic pain caused by possible falling exports and margins, and impacted EM portfolio flows as investors flee to safe havens like gold, Yen, Swiss franc, and Japanese government bonds. Uncertainty is now converted to certainty of economic and market pain.”
Sectoral Performance:
- Nifty Auto declined 1.25%
- Nifty IT dropped 1.67%
- Nifty Metals slipped 0.81%
- Pharma stocks outperformed, gaining 2.95%, as Trump’s tariffs did not impact the sector.
Global Market Impact
Trump’s tariff decision sent shockwaves across Asian markets:
- Japan’s Nikkei 225 plummeted 3%
- Hong Kong’s Hang Seng index fell 1.45%
- South Korea’s Kospi index dropped over 1%
US futures markets also reflected negative sentiment, with Dow Jones Futures falling by 1.94%, indicating a weak opening for Wall Street.
Currency Concerns and Future Market Trends
Analysts warned of potential currency tensions between the US and China, suggesting that if China devalues its currency in response to the tariffs, it could escalate market turmoil, triggering further outflows and equity losses.
Akshay Chinchalkar, Head of Research at Axis Securities, highlighted key support levels for the Nifty:
“Asia is a sea of red due to last night’s tariff announcements, so the Nifty is expected to open weak. First support lies in the 23,090 – 23,141 range, followed by the critical 22,800-23,000 zone. Today’s closing will indicate whether bulls or bears hold confidence now that the announcements are out of the way.”
With global uncertainties on the rise, market participants remain cautious, closely tracking developments in trade policies and economic impacts.