Fears of a global trade war escalated as U.S. President Donald Trump’s retaliatory tariffs deepened geopolitical tensions, prompting investors to exit equities in favor of safer assets.
On April 7, Indian markets are expected to open sharply lower, mirroring the global sell-off seen across Asian markets and Wall Street. The panic stems from President Trump’s tariff announcements, which have intensified concerns over international trade conflicts and economic uncertainty, triggering a global flight from risk assets.
As of 7:20 am, the GIFT Nifty index was quoting 22,130—plunging over 900 points or 3.6 percent. Asian markets were painted in red, reflecting the deepening investor anxiety, while U.S. futures nosedived.
S&P 500 futures tumbled 4.31 percent, and Nasdaq futures crashed 5.45 percent, adding to nearly $6 trillion in losses already seen last week. Japan’s Nikkei dropped 7.8 percent to its lowest levels since late 2023, while South Korea’s market declined 4.6 percent. Both Hong Kong’s Hang Seng and Taiwan’s benchmark index sank by a massive 10 percent.
Despite these staggering losses, President Trump remained unfazed, stating, “I don’t want anything to go down. But sometimes you have to take medicine to fix something,” suggesting a willingness to absorb market pain for broader policy objectives.
Back home, Indian markets had already shown signs of weakness in the previous week. Both the Sensex and Nifty 50 declined by 2.6 percent. The Nifty closed at 22,904, slipping below the psychological 23,000 level amid the global turmoil sparked by tariff fears and concerns over a potential economic slowdown.
Broader indices were also under pressure. The Nifty Midcap 100 and Smallcap 100 fell 2 percent and 2.6 percent respectively. Sector-wise, the IT space bore the brunt, dropping 9 percent due to anticipated cuts in U.S. tech spending. Meanwhile, the Nifty Metal index plunged 7.5 percent on fears of supply chain disruptions due to the escalating trade war.
Technically, the market’s recent breakdown from its consolidation zone has introduced heightened caution among traders. Previous support levels are now acting as resistance. “The index closed below its 20-day EMA, confirming a shift to a bearish trend. Key support is now seen around the 22,800–22,700 zone, which will be closely watched in the near term,” noted Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities.
Looking forward, investor attention will turn to the upcoming RBI policy meeting, where a possible rate cut is expected to boost domestic growth. Market participants will also keep a close eye on any easing in trade tensions, especially as fears of a U.S. recession grow. Additionally, the upcoming Q4 earnings season will be a crucial driver in shaping market direction in the coming weeks.
