Domestic equities opened under pressure on Monday, as renewed uncertainty in global markets following US President Donald Trump’s announcement of fresh tariffs on China triggered selling sentiment.
At the start of trade, the Nifty 50 index dropped 108.05 points (0.43%) to 25,177.30, while the BSE Sensex fell 450.25 points (0.55%) to 82,050.57.
“The return of tariff risks via global markets is weighing on investor sentiment in India,” said Ajay Bagga, Banking and Market Expert, in a statement to ANI.
“There is some risk coming to India through the listing of mega IPOs. The relief is that till Diwali only one IPO is planned, so secondary market volumes will not suffer due to bunched-up primary offerings draining liquidity. Buy-the-dip remains the US trade; we expect buyers to emerge in India at lower levels. US futures are up, cryptos are seeing a recovery, but Asian markets remain down.”
Selling pressure was broad-based across the NSE indices. While Nifty Media was marginally higher, all other major indices opened in negative territory: Nifty 100 fell 0.28%, Nifty Midcap 100 declined 0.20%, and Nifty Smallcap 100 slipped 0.33%.
Sectoral indices also reflected the cautious sentiment. Nifty IT dropped 0.45%, Nifty Auto traded slightly lower, and Nifty Metal lost 0.61%.
Global markets were rattled after US stocks experienced steep declines reminiscent of April sell-offs, following Trump’s tariff announcement. The US market capitalisation fell by nearly USD 2 trillion, triggering widespread declines across asset classes. The cryptocurrency market also suffered heavy losses, with total capitalisation down by USD 800 billion and USD 19 billion in liquidations — marking the largest single-day movement on record.
Safe-haven assets reacted sharply: oil prices fell, while gold and other defensive assets surged as investors moved to reduce risk exposure. US Treasury yields declined, reflecting a flight to safety.
Over the weekend, however, President Trump appeared to temper expectations, telling reporters while boarding his flight to Egypt that the November 1 rollout of 100% tariffs on China is “an eternity away,” hinting at potential negotiations.
From a technical perspective, Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, said, “Nifty is currently hovering near resistance, and a breakout above 25,500 would signal a continuation of the uptrend.
Overall, the index displays strong Relative Strength, with the market advancing slowly and steadily. Technically, the price is trading above all key moving averages, further indicating upward momentum. Optimism ahead of the quarterly earnings season adds to a positive market mood.”
