Sharp Global Market Decline Due to US-China Tariff War; GIFT Nifty Crashes 1006 Points. Indian Market Signals Significant Drop and Gap-Down Opening.
Stock Market Today: The Indian stock market is expected to open significantly lower today. At 7:36 AM, GIFT Nifty futures were trading at 21,952, down a substantial 1,006 points from the previous Nifty futures close of 22,958.15. This bly indicates a gap-down opening for the Indian equity market.
This decline is attributed to several global factors. The US has imposed tariffs on over 180 countries, prompting China to retaliate with counter-tariffs of up to 34% on US goods. This has heightened fears of a global trade war, negatively impacting market sentiment.
Furthermore, Foreign Portfolio Investors (FPIs) continue to withdraw funds from the Indian market. Adding to investor uncertainty, the RBI Monetary Policy Committee meeting commences today.
Significant Declines in Asian and US Markets
Global markets are experiencing a sharp downturn. Japan's Nikkei Index fell by 8%, and the Topix Index dropped by 8.6%. The significant decline led to the temporary suspension of Japanese futures trading due to circuit breaker activation.
South Korea's KOSPI Index fell by 4.3%, and the KOSDAQ by 3.4%. Australia's ASX 200 also declined by 6%, entering a correction zone.
In the US, Dow Jones Futures are down 979 points (2.5%). The S&P 500 is down 2.9%, and the Nasdaq 100 is down 3.9%. Crude oil prices have also fallen below $60 per barrel—WTI Crude is currently trading at $59.74, its lowest level since April 2021.
Indian Market Already Under Pressure
On Friday of last week, the Sensex fell by 930.67 points (1.22%), closing at 75,364.69. The Nifty 50 experienced a decline of 345.65 points (1.49%), closing at 22,904.45.
Analysts believe that further deterioration in global conditions could put even more pressure on the Indian market.
Expectations and Concerns Surrounding the RBI MPC Meeting
The market is closely watching the RBI's Monetary Policy Committee meeting, commencing today. A 25 basis point repo rate cut is anticipated, although some experts predict a larger reduction.
Decisions regarding liquidity may be made to support the banking sector and facilitate smoother interest rate adjustments. The RBI has already discussed this matter with several banks.
