Key Highlights:
Mumbai, April 3 (Sensex Today)— Indian equity benchmarks Sensex and Nifty 50 are expected to open on a volatile note Thursday morning, April 3, after US President Donald Trump’s tariff announcement triggered a significant selloff in global equity markets and pushed gold prices to fresh highs.
The aftershocks of the White House’s “economic independence” tariffs, including a 26% tariff on India, are likely to reverberate at Dalal Street today.
What Happened Globally Last Night
Dollar index slipped 0.4%, supporting the global bullion rally
Trump announced a blanket 10% tariff on all imports, and country-specific tariffs:
34% on China
26% on India
20% on EU
24% on Japan
US markets tanked in after-hours trading:
S&P 500 Futures down 3.5%
Nasdaq 100 Futures down 4.2%
Dow Futures off over 1,000 points
Tech stocks were hammered: Apple (-6%), Amazon (-5%), Nvidia (-4%), Tesla (-4.5%)
Gold prices surged to $3,166, nearing all-time highs amid a flight to safety
SGX Nifty Indicates Weak Start
The SGX Nifty, an early indicator of Nifty 50’s opening, was down over 200 points in early trade, suggesting a gap-down opening for Indian markets, mirroring global risk aversion.
Nifty & Bank Nifty Recap – April 2
- Nifty 50 closed at 23,332 (+167 pts), rebounding from Tuesday’s selloff
- Bank Nifty ended at 51,348 (+521 pts), led by PSU banks and HDFC twins
- Positive market breadth: 1,951 stocks advanced vs 640 declined
However, the India VIX remained elevated, signaling underlying caution ahead of geopolitical and macroeconomic triggers.
Key Factors to Watch Today
1. Trump Tariffs on India
The surprise 26% reciprocal tariff on Indian goods is expected to hurt export-focused sectors like:
- Auto ancillaries
- Textiles
- Pharma APIs
- Specialty chemicals
2. Gold Rally
Safe-haven flows may support:
- Jewelry stocks (Titan, Kalyan, Senco Gold)
- Gold loan firms (Muthoot Finance, Manappuram)
- Bullion-linked ETFs
3. Tech Stock Weakness Globally
Watch for possible spillover into:
- TCS, Infosys, HCLTech, especially those exposed to US clients
- Startup-heavy tech stocks listed on Indian exchanges
4. Rupee and Crude Watch
- USD/INR may weaken post tariff escalation
- Crude oil rose 0.7% overnight to $70.75/barrel
- This could weigh on OMCs like BPCL, IOC, and aviation stocks like IndiGo
Technical Levels to Watch
Nifty 50
- Support: 23,130 → 22,900
- Resistance: 23,490 → 23,800
- Strategy: Buy on dips above 23,130, but caution below 22,900
Bank Nifty
- Support: 50,700 → 50,300
- Resistance: 51,700 → 52,500
- Strategy: Bullish above 51,700, weak below 50,700
Expert Commentary
Sudeep Shah, SBI Securities:
“Markets are at a turning point. If Nifty breaks 23,130 decisively, expect further pressure. Traders should reduce leverage.”
Vidnyan S Sawant, GEPL Capital:
“Gold rally is a clear sign of market risk-off. The equity upmove is vulnerable unless Nifty breaks above 23,800.”
Stock Ideas for the Day
- Bullish Bias: Muthoot Finance, Titan, Hindustan Zinc, Senco Gold
- Bearish Bias: Tata Motors, Infosys, Lupin, Apollo Tyres
With global cues turning sharply negative after Trump’s tariff declaration, Indian equities may face early pressure on April 3. While Nifty and Bank Nifty showed strength on April 2, sustaining those gains will be tough unless the geopolitical jitters ease.
Investors should brace for high volatility, and traders are advised to stay light and nimble around key support and resistance zones.
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