Indian equities are poised for a sharp gap-down opening today, with Nifty expected to decline nearly 160 points amid escalating global trade tensions triggered by former U.S. President Donald Trump’s tariff war. As of 7:53 AM, the adjusted GIFT Nifty was down 165 points, reflecting the bearish sentiment in global markets.
The escalation in trade tensions comes after Trump signed an action imposing 20% tariffs on Chinese imports while reaffirming reciprocal tariffs on Mexico and Canada, stating there is “no room left for a deal.” In response, Canada announced retaliatory tariffs of 25% on U.S. imports worth C$30 billion, effective today. This tit-for-tat trade war has sparked concerns over global economic instability, weighing on investor sentiment.
Asian markets have reacted negatively to these developments, with key indices trading lower amid fears of disruptions in global trade flows. Analysts expect the Indian stock market to witness volatility, with IT and export-driven stocks likely to be in focus due to their sensitivity to U.S. trade policies.
Market participants will be closely monitoring further statements from global policymakers, with expectations of heightened geopolitical and economic uncertainty driving risk-off sentiment in the near term.
