The Indian stock market is poised for a positive opening on Tuesday, bouncing back from significant losses experienced in the previous session. This anticipated rebound comes as Asian markets show signs of recovery, despite a mixed performance from Wall Street overnight. The Sensex and Nifty 50 are expected to reflect this optimism, following a tumultuous day marked by fears surrounding global trade tensions.
Market Overview: Sensex and Nifty 50
On Monday, the Indian stock market faced its most considerable single-day decline in ten months. The Sensex plummeted by 2,226.79 points, or 2.95%, closing at 73,137.90, while the Nifty 50 dropped 742.85 points, or 3.24%, finishing at 22,161.60. This downturn stemmed from escalating concerns about the economic implications of a global trade war ignited by U.S. President Donald Trump’s tariff strategies.
Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, observed: “Falling commodity prices for crude oil and various metals suggest a decline in demand if this trend continues. With Dow Futures indicating a shaky start for the U.S. markets on Monday, global equity benchmarks may face further challenges on Tuesday.”
Global Market Influences
Asian Markets on the Rise
Asian stock markets experienced a rally on Tuesday, recovering from the previous day’s setbacks. Key highlights include:
- Nikkei 225 surged by 5.34%.
- Topix increased by 5.53%.
- Kospi gained 2.26%.
- Kosdaq rose 2.35%.
- However, futures for Hong Kong’s Hang Seng index pointed towards a weaker opening.
Gift Nifty’s Positive Outlook
The Gift Nifty was trading around the 22,650 mark, reflecting a premium of nearly 386 points over the previous close of Nifty futures. This signals a favorable start for Indian stock indices.
U.S. Market Performance
In the U.S., markets closed with mixed results on Monday amid worries about a potential economic slowdown and increasing inflation linked to President Trump’s tariff policies. Notable movements include:
- The Dow Jones Industrial Average fell by 349.26 points (0.91%) to 37,965.60.
- The S&P 500 decreased by 11.83 points (0.23%) to 5,062.25.
- Meanwhile, the Nasdaq Composite edged up by 15.48 points (0.10%) to 15,603.26.
Despite the downturn, technology stocks showed some resilience, with Nvidia shares climbing over 3% and Amazon gaining 2.5%. In contrast, Apple and Tesla saw declines of 3.7% and 2.6%, respectively.
Trade War Tensions
President Trump has threatened to impose an additional 50% tariff on China if they do not retract their retaliatory tariffs against U.S. exports by April 8, 2025. He has also announced that discussions with China regarding their requests for meetings will cease.
China’s Response
China’s Commerce Ministry has firmly opposed Trump’s tariff threats, labeling them as “blackmail.” They expressed their commitment to implementing countermeasures to protect their rights and interests, describing the U.S. actions as “a mistake on top of a mistake.” The ministry urged the U.S. to resolve conflicts through respectful dialogue.
Economic Support from China
According to reports, the People’s Bank of China is backing its sovereign wealth fund, Central Huijin Investment, in increasing its investments in stock market index funds. The central bank plans to provide re-lending support to ensure the smooth functioning of the capital market as necessary.
Gold and Oil Market Updates
In commodity markets, gold prices have rebounded slightly from a near four-week low, with spot gold rising 0.3% to $2,990.48 an ounce, while U.S. gold futures increased by 1.1% to $3,004.70.
On the other hand, crude oil prices saw a recovery, with Brent futures climbing 1.26% to $65.02 per barrel and U.S. West Texas Intermediate rising 1.52% to $61.61.
As the global financial landscape shifts, investors are closely monitoring these developments for potential opportunities and risks in the market.
