Indian Markets Rattle Amid Trump Tariff Threat: Investors Brace for Volatility

Indian stock markets experienced turbulence as both Nifty 50 and BSE Sensex fell due to looming US tariffs. Experts anticipate short-term volatility with potential market rebound upon tariff concessions. Sectoral shift observed with IT under pressure while Media and Auto sectors saw gains. Asian stocks found recovery on Tuesday.

Indian equities faced significant selling pressure on Tuesday morning, as both Nifty 50 and BSE Sensex indices suffered declines amid concerns over upcoming US tariffs set for April 2. Nifty 50 slipped 178 points or 0.76% to 23,341.10, while BSE Sensex saw a 536.33-point drop, opening at 76,878.59.

Financial analysts suggest that the Trump administration's tariff announcement is the primary factor influencing current market conditions. Market impacts are expected to initially appear severe, with situations likely to improve as tariff concessions and exclusions emerge. Banking and Market Expert Ajay Bagga expressed the consensus prediction of 15% to 20% tariffs on all countries come April 2, suggesting a potential market rebound pending any tariff adjustments or exclusions.

Sector reviews revealed that Nifty IT stocks faced the brunt of the sell-off, declining by over 1.4%. Conversely, Nifty Media and Auto experienced gains of 0.98% and 0.49%, respectively. Among individual stocks in the Nifty 50, Trent led with over 4% gains, contrary to downturns seen in Infosys, TCS, and Shriram Finance. Akshay Chinchalkar of Axis Securities highlighted tactical market support within key index zones, suggesting potential upside targets remain intact barring deeper market breaches. Meanwhile, other Asian markets such as Japan's Nikkei 225 and Hong Kong's Hang Seng made gains, buoyed by regional recoveries.

(With inputs from agencies.)