Gap Down Opening For Indian Markets Likely - Trump's Reciprocal Tariff Led To Bloodbath Across The Globe!
On April 03, 2025, foreign institutional investors (FII) sold shares worth Rs 2,806.00 crore, while domestic institutional investors (DII) bought shares worth Rs 221.47 crore.
Pre-Market Update at 7:30 AM: Indian stock market benchmark indices, Sensex and Nifty 50, are set to open lower on Friday, influenced by weakness in global markets following the imposition of US trade tariffs. Global sentiment has turned negative as US President Donald Trump’s broad-based tariffs have intensified concerns about a potential trade war and economic slowdown.
Asian markets mirrored this cautious outlook, while the US stock market experienced a sharp sell-off overnight, erasing USD 2.4 trillion in market value from S&P 500-listed companies.
Gift Nifty hovered around 23,211, nearly 98 points below the previous close of Nifty futures, signaling a gap-down opening for Indian indices.
Wall Street suffered its steepest single-day percentage drop since 2020. The Dow Jones fell 1,679.39 points (-3.98 per cent) to 40,545.93, while the S&P 500 lost 274.45 points (-4.84 per cent) to 5,396.52. The Nasdaq Composite plunged 1,050.44 points (-5.97 per cent) to 16,550.61.
In the US labor market, jobless claims declined last week, with initial state unemployment filings dropping by 6,000 to 219,000 for the week ending March 29. This was lower than the economists' forecast of 225,000.
Meanwhile, the US services sector slowed to a nine-month low in March. The Institute for Supply Management (ISM) reported that the nonmanufacturing PMI dropped from 53.5 in February to 50.8, the weakest reading since June 2024. Market expectations had projected a decline to 53.
Asian stock markets followed Wall Street’s losses on Friday after the announcement of US tariffs. Japan’s Nikkei 225 declined 2.07 per cent, while the Topix index slipped 2.69 per cent. South Korea’s Kospi fell 1.15 per cent, and the Kosdaq edged down 0.68 per cent. Markets in Hong Kong and China remained closed for the Qingming Festival.
On Thursday, Indian stock markets ended in the red as Trump’s reciprocal tariffs targeted nations with high trade barriers against US exports, including India. The Sensex dropped 322.08 points (-0.42 per cent) to 76,295.36, while the Nifty 50 closed 82.25 points lower (-0.35 per cent) at 23,250.10.
Crude oil prices declined as Trump’s tariff announcement coincided with OPEC’s decision to accelerate production increases. Brent crude slipped 0.51 per cent to USD 69.78 per barrel, while WTI crude futures dropped 0.52 per cent to USD 66.60.
Most Asian currencies consolidated against the dollar in early Asian trade ahead of U.S. March employment data and Fed Chair Powell's speech. The Dollar index reached 101.54, while USD/INR was trading at 85.26.
On April 03, 2025, foreign institutional investors (FII) sold shares worth Rs 2,806.00 crore, while domestic institutional investors (DII) bought shares worth Rs 221.47 crore.
There are not any stocks banned for trading in the F&O segment on April 04, 2025.
Disclaimer: The article is for informational purposes only and not investment advice.