Indian equity markets are bracing for a sharp decline at the open, with the GIFT Nifty indicating a gap-down of nearly 300 points, mirroring the deep selloff in global equities overnight. Investor sentiment has turned cautious once again as trade tensions between the United States and China intensify ahead of fresh tariff deadlines.
On Wall Street, all three major indices ended lower by up to 2.5% in the latest session, with the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 all succumbing to renewed fears of a global slowdown triggered by President Donald Trump’s tariff policies. US futures continued to slide in early Asia hours, hinting at another volatile session ahead.
In a significant escalation, President Trump has imposed an additional 50% tariff on Chinese imports, bringing the cumulative tariff rate to a staggering 104%, effective today. Further adding to market jitters, Trump also announced that a “major tariff on pharmaceuticals” will be unveiled soon, signaling that the trade war could extend into critical sectors like healthcare.
Asian markets reacted sharply to the developments, with Japan’s Nikkei 225 opening down more than 3.5%. Country-specific tariffs are set to come into force starting midnight US time, raising fears of retaliatory action and broader market dislocations across global supply chains.
Back home, all eyes are on the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting today. The central bank is widely expected to announce a 25 basis point rate cut, with analysts anticipating a dovish tone in the commentary. Economists believe the RBI could view global tariffs as an additional headwind for India’s financial markets and macroeconomic outlook.
Investors are likely to remain on edge as geopolitical tensions escalate, with heightened volatility expected to continue in the near term.
