Indian Stock Market Crashes Amid US Tariff Fears; Nifty and Sensex Plunge

Indian stock markets experienced a significant crash on Monday morning, with both the Nifty 50 and Sensex dropping sharply amid growing concerns over US reciprocal tariffs set to take effect from April 9. In early trade, the Nifty 50 was down by 3.85%, while the Sensex plunged by 4.16%, reflecting widespread panic in the market.

Sectoral Indices and Major Stocks Hit Hard

All sectoral indices were trading in the red, with the IT and metal sectors taking the hardest hit, each falling by 7%. Both the BSE Midcap and Smallcap indices were also down by 6%, further reflecting the breadth of the market sell-off. Among the major losers on the Nifty were Tata Steel, JSW Steel, Tata Motors, and ONGC, which faced substantial declines in early trading.

Market Recovery After Initial Sell-Off

While the market witnessed a sharp decline at the opening bell, there was a slight recovery as buying activity returned. However, market experts cautioned that the outlook remained bearish amid a lack of strong domestic triggers and concerns over global economic conditions.

Global Market Trends and Tariff Concerns Driving Bearish Sentiment

Experts indicated that the Indian equity markets were expected to open weak, as reflected by the GIFT Nifty, which was trading around 22,090, down by 867 points in early trades. This suggests a cautious sentiment among investors, largely driven by weak global cues and uncertainty regarding the US reciprocal tariffs. In the absence of strong domestic catalysts, market participants were expected to rely on global market trends, crude oil prices, and institutional flows for further market direction.

Technical Analysis: Nifty Faces Bearish Pressure

On the technical front, the Nifty 50 formed a bearish candle on the daily chart, signaling increased selling pressure at key resistance levels. Immediate support for the index is seen at 22,400 and 22,000, levels where the index has historically shown stability. These zones could potentially act as reversal points, offering buying opportunities if supported by favorable price action. On the upside, 23,000 remains the immediate resistance level, and a sustained move above this could pave the way for further gains toward 23,100 and 23,400.

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Institutional Activity: FIIs and DIIs Show Bearish Sentiment

In terms of institutional activity, Foreign Institutional Investors (FIIs) continued their bearish stance, remaining net sellers for the fifth consecutive session on April 4. FIIs offloaded equities worth Rs 3,483 crore, further adding to the market’s downward pressure. Meanwhile, Domestic Institutional Investors (DIIs), who had been net buyers in the previous sessions, turned sellers and offloaded equities worth Rs 1,720 crore on the same day.

Market Sentiment Remains Cautious Amid Tariff Fears

The Indian stock market is under pressure due to global economic uncertainties and the upcoming US reciprocal tariffs, with bearish sentiment dominating the market. Investors are closely monitoring international cues, crude oil prices, and institutional flows as they navigate through this volatile period.