Indian Stock Market Faces Significant Decline Amid Fears of US Tariffs

Synopsis

On April 7, the Indian stock markets experienced a steep decline due to concerns over impending US reciprocal tariffs scheduled for April 9. The Nifty 50 and Sensex fell by 3.85% and 4.16%, respectively, in early trading, with all sectoral indices experiencing losses.

Key Takeaways

Indian stock markets declined due to US tariff fears.
Nifty 50 and Sensex dropped significantly.
All sectoral indices traded in the red.
Foreign institutional investors remained net sellers.
Technical indicators showed bearish trends.

Mumbai, April 7 (NationPress) The Indian stock markets plummeted on Monday morning due to concerns regarding the implementation of US reciprocal tariffs, which are set to take effect on April 9. The Nifty 50 and Sensex were reported to be down by 3.85 percent and 4.16 percent, respectively, in early trading.

All sectoral indices were in decline, with both the IT and metal sectors experiencing a drop of 7 percent each. The BSE Midcap and smallcap indices also fell by 6 percent each during early trades.

Major losers on the Nifty included Tata Steel, JSW Steel, Tata Motors, and ONGC.

Despite the chaos at the opening bell, a slight recovery was observed as buying activity resumed.

Experts anticipated that equity markets would begin on a bearish note today, as indicated by the GIFT Nifty, which was around 22,090 in early trades, reflecting a significant drop of 867 points.

“This suggests a cautious outlook among investors, primarily influenced by weak global signals and the absence of robust domestic triggers. In light of the lack of local catalysts, market participants are likely to draw insights from global market trends, crude oil prices, and institutional flows for further guidance,” stated the experts.

From a technical perspective, the Nifty 50 has developed a bearish candle on its daily chart, indicating selling pressure at critical resistance levels.

“Immediate support is identified at 22,400 and 22,000 for intraday trading, as the index has historically demonstrated stability near these zones. These levels may serve as reversal points, providing buying opportunities if accompanied by favorable price movements. On the upside, 23,000 represents the immediate resistance level. A sustained move above this threshold could facilitate further upward movement toward 23,100 and 23,400,” the experts noted.

Similarly, the Bank Nifty also exhibited a bearish candle on the daily chart, pointing to increased selling interest.

Regarding institutional activity, foreign institutional investors (FIIs) have been net sellers for the fifth consecutive session as of April 4, offloading equities worth Rs 3,483 crore.

Meanwhile, domestic institutional investors (DIIs), who had been net buyers for the previous five sessions, shifted to a selling stance, offloading equities worth Rs 1,720 crore on the same day.