Impact of US Tariff Decision on Indian Stock Markets: Sensex Plunges 200 Points
Opening Bell: Indian stock markets opened weak on Thursday, March 27th, following the announcement of new tariffs on US auto imports. US President Donald Trump announced a 25% tariff on all cars not manufactured in the US, effective April 2nd. This decision led to a decline in global markets, impacting Indian markets as well.
The 30-share BSE Sensex opened over 200 points lower at 77,087.39, while the Nifty50 opened 40 points or 0.17% down at 23,446.35.
Nifty Support and Resistance Levels
According to Bajaj Broking, the Nifty may consolidate in the range of 23,850-23,200 in the near future. A sharp rise of 1,900 points in just 15 sessions recently has led to an overbought situation. At the lower end, 23,200 will be a crucial support level, which was a recent breakout area.
Market Conditions on Wednesday
After seven consecutive days of gains, the market witnessed a decline on Wednesday. Lack of clarity in US tariff policies and profit-booking led to the Nifty closing 181 points (0.77%) lower at 23,486.85. The BSE Sensex also closed 728.69 points (0.93%) down at 77,288.50.
Global Market Overview
US markets also saw a downward trend.
S&P 500 closed 1.12% down at 5,712.20.
Dow Jones Industrial Average closed 0.31% down at 42,454.79.
Nasdaq Composite reached 17,899.01, down 2.04%.
The tech sector witnessed a significant decline, with NVIDIA shares falling by 6%, Meta and Amazon shares falling by over 2%, Alphabet by 3%, and Tesla by over 5%.
Asian Market Response
Asian markets showed a mixed response on Thursday. Chinese markets saw gains, while Japanese and South Korean markets declined.
Japan's Nikkei 225 fell 0.99%.
Topix index fell 0.48%.
South Korea's Kospi fell 0.94%.
