Key Highlights:
Mumbai, April 3, 2025— The Nifty 50 index is staring at a potentially volatile open on Thursday, as Indian investors digest a dramatic overnight development: US President Donald Trump’s announcement of sweeping new tariffs on imports from over 60 countries, including India.
The reciprocal tariffs, which include a 26% levy on Indian imports and higher rates for key global partners like China (34%), the EU (20%), and Japan (24%), sent shockwaves through global markets. US indices nosedived in after-hours trade, with the Nasdaq 100 futures crashing over 4.5%, S&P 500 futures falling 3.5%, and Dow Jones futures sliding over 1,100 points.
Back home, the Nifty 50 had managed a smart recovery in the previous session, rising 167 points to close at 23,332. However, today’s open could see a sharp reaction to global risk-off sentiment and concerns over the ripple effect of protectionist trade policies.
Global Turmoil: A Wake-Up Call for Domestic Markets
The announcement by Trump is being called a “declaration of economic independence”, but analysts warn it could lead to recessionary pressures, spike inflation, and slow global growth. Apple, Nvidia, Tesla, Amazon, and Meta all saw their stocks tumble between 4%–7% in post-market trade.
Gold surged to near all-time highs as investors sought safe-haven assets, and crude oil prices dropped 3% amid fears of falling global demand.
Nifty 50 Key Levels and Strategy
According to technical experts:
- Support Zone: 23,130 – 23,000
- Resistance Zone: 23,490 – 23,800
- Breakout Point: A move above 23,490 can trigger fresh upside towards 23,800+
- Breakdown Point: A fall below 23,130 can drag Nifty down to 22,900 and lower
Suggested Strategy:
Buy Nifty Futures near 23,400 with a stop-loss of 23,300 and a target of 23,700 – 23,800, only if global cues stabilize.
What’s at Stake Today
- Weekly Options Expiry: April 3 marks the weekly expiry for Nifty 50 options contracts, adding another layer of volatility.
- Currency Watch: The rupee may weaken at the open due to global dollar strength and outflows.
- Bond Market View: Bond yields are likely to remain subdued as investors assess inflation implications of the tariff move.
- Sector Impact: Export-oriented sectors like IT, Pharma, and Auto parts may see pressure. Metal and defense stocks could rally on expectations of local manufacturing push.
Expert Commentary
Sudeep Shah, Head of Technicals, SBI Securities:
“Markets may enter a consolidation phase between 22,900 to 23,800 amid global uncertainties. The next decisive move will emerge from the tariff aftermath and earnings season cues.”
Jatin Gedia, Analyst, Mirae Asset Sharekhan:
“This is a critical day. If Nifty sustains above 23,490, the momentum can continue. But traders must remain cautious due to international shocks.”
Global Economic Impact & Inflation Risks
The announced tariffs would raise average US import tariffs to 26%, the highest in over a century. Analysts estimate it could:
- Add 2.5% to US CPI inflation
- Slow down GDP growth to 1.5%
- Prompt Fed to pause rate cuts, keeping borrowing costs elevated
The Nifty 50 enters Thursday’s trade at a pivotal moment, caught between domestic optimism and global risk aversion. With options expiry, Trump’s tariffs, and fragile investor sentiment, market participants should brace for sharp swings, especially at the opening bell.
Stay tuned to Hindustan Herald for real-time market updates and expert analysis throughout the day.
The Hindustan Herald Is Your Source For The Latest In Business, Entertainment, Lifestyle, Breaking News, And Other News. Please Follow Us On Facebook, Instagram, Twitter, And LinkedIn To Receive Instantaneous Updates. Also Don’t Forget To Subscribe Our Telegram Channel @hindustanherald