 "Indian stock market tanks amid mixed global cues: Sensex opens at 76,882, Nifty below 23,400")
The Indian stock market, grappling with mixed global cues, opened in red in the first trading session of the new financial year.
On Tuesday (April 1), benchmark indices opened with losses of nearly 70 basis points each.
The 30-share BSE Sensex started the day at 76,882, a discount of 532.34 points or 0.68 per cent from the previous session’s close.
The broader Nifty 50 index opened at 23,341, down 178.25 points or 0.75 per cent from Friday’s (March 28) closing levels.
Mixed global cues
The markets were pulled down by information technology stocks, as US President Donald Trump’s comments about “broader” reciprocal tariffs stoked investor worries.
Trump had said on Sunday (March 30) that the reciprocal tariffs due on April 2 will include “all countries” rather than a group of 10 to 15 countries with the biggest trade imbalances. That statement sparked off fears that an escalating trade war could plunge the US economy into a recession.
US stocks marked a dramatic bullish reversal. The S&P 500 closed 0.6 per cent higher and the Dow Jones rose 1 per cent, while the Nasdaq 100 finished the day nearly flat. According to Axis Securities, “the recovery was most likely triggered by President Trump saying that reciprocal tariffs - due to be revealed in the next two days - will be lower and in some cases ‘substantially lower’.”
Following the performance on Wall Street, equities in Asia rose on Tuesday, paring the steep drops from a day prior.
Japan’s Nikkei jumped 0.7 per cent, while South Korea’s KOSPI advanced 1.4 per cent. Taiwan’s equity benchmark climbed 1.7 per cent and Hong Kong’s Hang Seng gained 1 per cent, while mainland Chinese blue chips edged 0.1 per cent higher.
Impact Shorts
More ShortsWhat next for Indian stock markets?
Since markets across the globe are currently focused on Trump’s reciprocal tariffs that are to announced on April 2. Mrket trends globally and domestically will depend on the details of the levies imposed.
“India outperformed most markets in March with 6.3 per cent return. FIIs turning buyers and the consequent short covering contributed to the rally. Can the rally continue or will there be another downturn? This will depend mainly on what Trump announces in tariffs. If the tariffs are lower-than-feared there can be a rally in the market which will be led by externally linked sectors like pharmaceuticals and IT,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
He mentioned that if the tariffs are severe there can be another round of downturn in the market.
With inputs from agencies
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