Indian stock markets witnessed a major sell-off on April 7, following global market jitters and heightened geopolitical concerns. Both the Nifty 50 and Sensex plunged sharply at the opening bell, reacting to escalating fears of a global trade war.
Nifty Opens 5% Lower
At 9:10 AM, the Nifty 50 was down by 5%, losing 1,150 points, and was trading around 21,750. The decline followed a steep drop in the GIFT Nifty index, which was already quoting at 22,130, down over 900 points or 3.6% earlier in the morning.
Global Sell-Off Triggers Panic
Asian markets opened deep in the red, mirroring Wall Street’s sharp correction:
- S&P 500 futures fell 4.31%
- Nasdaq futures dived 5.45%
- Japan’s Nikkei tumbled 7.8%
- South Korea dropped 4.6%
- Hang Seng and Taiwan indices crashed 10%
The sell-off was triggered by U.S. President Donald Trump’s retaliatory tariffs, which reignited fears of a global trade war. Despite the meltdown, Trump said, “I don’t want anything to go down. But sometimes you have to take medicine to fix something,” indicating no immediate concern over market losses.
Domestic Markets React Sharply
Last week, Sensex and Nifty 50 had already dropped 2.6% each, with the Nifty closing at 22,904, slipping below the 23,000 mark. Broader indices also saw pressure:
- Nifty Midcap 100 fell 2%
- Nifty Smallcap 100 declined 2.6%
Sectoral Pain
- IT sector crashed 9%, on worries about reduced US tech spending
- Nifty Metal fell 7.5%, amid fears of business disruptions from the trade conflict
Technical View: Bears Take Charge
Analysts noted that the market has broken down from its recent consolidation zone, turning former support into resistance.
“The index settled below its 20-day EMA, confirming a bearish shift. Immediate support now lies in the 22,800–22,700 range,” said Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities.
What’s Next?
Going forward, investors will watch the upcoming RBI meeting closely, hoping for a rate cut to support domestic growth. At the same time, any developments related to trade tariffs and the Q4 earnings season starting soon will be critical in determining the market’s broader direction.
With global uncertainty and recession risks rising, traders are bracing for more volatility in the days ahead.
