Synopsis
The stock markets in Mumbai faced a severe downturn as Sensex and Nifty dropped over 3% due to increasing fears over a global trade war. Major sectors and indices suffered significant losses, and analysts suggest that immediate support levels may offer some buying opportunities.Key Takeaways
- Sensex down 2,690 points or 3.57%
- Nifty down 881 points or 3.85%
- All sector indices in the red
- Major declines in auto and IT sectors
- Support levels at 22,400 and 22,000
Mumbai, April 7 (NationPress) In a dramatic decline on Dalal Street, the stock markets fell sharply on Monday morning following a global sell-off, driven by heightened trade war concerns linked to upcoming US reciprocal tariffs.
As of 9:55 am, the Sensex had decreased by 2,690 points or 3.57 percent to reach 72,654, while the Nifty was down 881 points or 3.85 percent, sitting at 22,020.
Alongside large-cap stocks, substantial selling pressure was noted in mid-cap and small-cap stocks. The Nifty midcap 100 index fell by 2,335 points or 4.61 percent, landing at 48,310, whereas the Nifty smallcap 100 index dropped by 1,055 points or 6.73 percent to 14,620.
Sector-wise, all indices were in the negative. The auto, IT, real estate, media, energy, and infrastructure sectors were among the biggest decliners.
Within the Sensex roster, significant declines were observed in Tata Steel, Tata Motors, Infosys, Tech Mahindra, L&T, HCL Tech, TCS, Reliance Industries, NTPC, Axis Bank, M&M, Kotak Mahindra Bank, IndusInd Bank, and M&M.
Most Asian markets also experienced selling pressure, with Tokyo, Shanghai, Bangkok, Seoul, and Hang Seng witnessing falls of up to 11 percent.
On Friday, the US markets experienced a significant sell-off attributed to reciprocal tariffs, with the Dow closing down by 5.50 percent and the tech index Nasdaq dropping nearly 5.82 percent.
Oil prices have sharply decreased amid global uncertainties, particularly after Saudi Arabia announced its largest price cut on oil in years. Brent crude fell 2.67 percent to $63.82 per barrel, while West Texas Intermediate dropped 2.69 percent to $60.31.
Hardik Matalia, Derivative Analyst at Choice Broking, stated, "From a technical perspective, the Nifty 50 has formed a bearish candle on the daily chart, indicating selling pressure at critical resistance levels. Immediate support is noted at 22,400 and 22,000 for intraday trading, as the index has historically shown stability in these zones."
"These levels may serve as potential reversal points, providing buying opportunities if supported by favorable price movements," he added.
