Indian markets tumble over U.S. tariff concerns
From a technical standpoint, the Nifty 50 index has created a bearish candlestick pattern on the daily chart, indicating heightened selling activity around significant resistance zones. This formation suggests that traders are booking profits or exiting positions at higher levels, leading to downward pressure on the index. The pattern reflects market hesitation and could point to potential short-term weakness unless strong buying support emerges to counter the current resistance and shift momentum back in favor of the bulls.
Mumbai: The Indian stock markets witnessed a significant downturn on Monday morning, triggered by growing anxiety surrounding the impending reciprocal tariffs from the United States, slated to take effect on April 9. Early trading hours saw steep declines across benchmark indices, with the Nifty 50 plunging 3.85 percent and the Sensex slipping 4.16 percent.
Investor sentiment was broadly negative, with all sectoral indices flashing red in early trade. The technology and metal sectors bore the brunt of the sell-off, each registering losses of around 7 percent. Midcap and smallcap stocks also suffered heavy losses, with the BSE Midcap and Smallcap indices declining by 6 percent apiece.
Among the top losers on the Nifty were heavyweights such as Tata Steel, JSW Steel, Tata Motors, and ONGC, reflecting widespread bearish sentiment across key sectors. Despite the rough start, some recovery was noted later in the session as selective buying returned to the market, offering mild relief from the opening losses.
Market analysts pointed to the GIFT Nifty’s early movements as an indication of the bearish trend, as it hovered near 22,090 — a sharp drop of 867 points — ahead of the official market opening. This projected a gloomy outlook and hinted at a highly cautious approach by market participants.
Experts attributed Monday’s slump to a combination of weak global cues and a lack of substantial domestic triggers to support investor confidence. “In the absence of any strong local catalysts, the direction of the markets is likely to be influenced by global indicators such as international equity trends, movements in crude oil prices, and the behavior of institutional investors,” analysts explained.
From a technical analysis perspective, the Nifty 50 formed a bearish candlestick pattern on its daily chart, a classic sign of selling pressure at higher levels. This pattern indicates that sellers are becoming more aggressive near key resistance zones, creating downward momentum.
Experts identified crucial intraday support for the Nifty 50 at the 22,400 and 22,000 levels, noting that the index has historically demonstrated resilience near these zones. These levels may provide potential turning points for a short-term bounce if supported by encouraging price action. On the resistance side, 23,000 was flagged as the immediate hurdle. A firm close above this level could open the doors for further upside, potentially driving the index toward 23,100 or even 23,400.
A similar bearish setup was observed on the Bank Nifty chart, signaling elevated selling interest in banking stocks as well. The formation of a bearish candle there reflects negative sentiment within the financial sector, which often plays a significant role in broader market direction.
On the institutional front, foreign institutional investors (FIIs) continued to pull out of Indian equities, remaining net sellers for the fifth session in a row as of April 4. FIIs offloaded shares worth Rs 3,483 crore, showing a consistent trend of capital outflows amid global uncertainty.
Domestic institutional investors (DIIs), who had been actively supporting the market by remaining net buyers over the last several trading sessions, also turned cautious. On April 4, DIIs sold equities worth Rs 1,720 crore, reversing their recent buying stance and contributing to the downward pressure.
Market experts believe that until global uncertainties ease and domestic catalysts emerge, Indian equities could remain volatile. “Markets are currently in a reactive phase, driven more by global developments than domestic fundamentals. With U.S. tariff actions looming and no clear signals from central banks or government policy, investors are likely to remain cautious in the near term,” analysts noted.
The prevailing bearish sentiment was further reinforced by subdued volumes and nervous trading across sectors. High-beta stocks, which are generally more sensitive to market movements, were among the hardest hit. Traders and investors alike appeared to be adopting a wait-and-watch approach, monitoring international developments and institutional activity for any signs of stabilization.
Despite the grim outlook, some market observers advised looking out for bargain buying opportunities around historically strong support levels. “While the trend remains negative, sharp corrections often present favorable entry points for long-term investors, especially in quality stocks that are fundamentally sound,” said one technical analyst.
In conclusion, the Indian stock markets started the week on a jittery note, reacting sharply to global tariff concerns and institutional selling. The road ahead remains uncertain, with price action likely to remain influenced by external developments. Key support and resistance levels on the charts, institutional activity, and evolving global cues will play a critical role in shaping the market’s next move.