The stock market faced a tumultuous start on Monday as India’s key indices—Nifty 50 and Sensex—plummeted significantly, both dropping over 5%. This sharp decline came on the heels of a global market downturn triggered by heightened trade tensions between the United States and China, particularly following the latest tariff announcements by President Donald Trump. Investors are now grappling with fears that escalating trade disputes could severely hinder worldwide economic growth.

Market Performance Overview

In early trading, the BSE Sensex registered a staggering drop of 3,939.68 points, or 5.22%, bringing it down to 71,425.01. Similarly, the Nifty 50 index fell by 1,160.8 points, equivalent to 5.06%, settling at 21,743.65. The turmoil wasn’t limited to India; major Asian markets also faced significant losses:

• Hong Kong’s Hang Seng index plunged nearly 11%.
• Tokyo’s Nikkei 225 saw a decline of almost 7%.
• The Shanghai SSE Composite index dropped over 6%.
• South Korea’s Kospi index fell by 5%.

Expert Insights on Market Volatility

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the current volatility in global markets, attributing it to the unpredictability of Trump’s tariff policies. He advised investors to adopt a cautious wait-and-see approach during these turbulent times. Key takeaways from his analysis include:

• The Trump tariffs are unlikely to be a long-term fixture.
• India’s economy is relatively insulated, with exports to the U.S. comprising only about 2% of its GDP, meaning potential impacts on growth are minimal.
• Ongoing negotiations for a Bilateral Trade Agreement with the U.S. may lead to reduced tariffs for Indian exports.

Technical Analysis and Future Support Levels

According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the Nifty 50’s significant sell-off correlates strongly with negative global cues, particularly the recent retaliatory tariffs. The index has formed a 650-point gap in its opening, indicating a selling climax. Investors should monitor support levels around 21,700-21,500, as a potential bounce-back could occur from these lower support points.

Stock Recommendations for the Week

Nagaraj Shetti has also shared short-term stock recommendations:

• Buy Aadhar Housing Finance Ltd at ₹427, targeting ₹460 with a stop loss at ₹405. The stock is exhibiting signs of recovery with a bullish trend of higher tops and bottoms.
• Sell Tata Chemicals Ltd at ₹789, aiming for a target of ₹747 and a stop loss at ₹820. The stock has been trending downwards, and the current bearish pattern suggests a potential breakdown.

As the market continues to navigate these challenges, investors are advised to stay informed and adjust their strategies accordingly. For more insights on market trends and stock recommendations, keep following our updates.