A sharp global sell-off triggered by new US-China tariffs caused panic in the markets. Nifty opened with a massive 1,150-point gap-down and closed 3.24% lower as investors worried about a potential global recession.
Summary of Key Events:
Nifty Intraday Movement:
- Opened at Dayโs Low: 21,758.40 (down 1,150 points)
- Recovered to: 22,150 mid-day
- Closed at: 22,161.80 (down 3.24%)
- Day’s Range: Highly volatile with sharp swings
Global Trigger:
- US Indices Crash: Dow Jones and Nasdaq fell 5.5% overnight
- Futures Drop: Another 3โ4% down in early trading
- Cause: US imposed new tariffs, China responded with retaliatory measures
Market Breadth:
- Total NSE Stocks: 3,036
- Declined: 2,640
- Advanced: 327
- Unchanged: 69
๐ฅ Conclusion: Extremely broad-based selling pressure
Sectoral Impact:
All 12 sectors ended in the red. Some key ones:
- Worst hit:
- Nifty Metal: -6.75%
- Nifty Realty: -5.69%
- Nifty Media: -3.94%
- Least affected:
- Nifty FMCG: -1.10%
Derivatives โ Open Interest (OI) Data:
- Call OI (Resistance): 22,000 & 22,500
- Put OI (Support): 22,000 & 21,800
๐ก Interpretation: Strong resistance near 22,400โ22,500 and support at 21,800โ22,000
Volatility Surge:
- India VIX: Spiked 65.62% to 22.79 โ sign of extreme fear and expected volatility ahead
๐ฎ๐ณ Key Domestic Developments:
Economic Policy:
- Excise Duty Hiked by โน2/litre on petrol & diesel
โค Retail prices unchanged, as global oil prices fall - RBI Monetary Policy: Expected 25 bps repo rate cut
โค Inflation easing, but global risk clouds outlook
Corporate & Economic Highlights:
| Company/Entity | Update |
|---|---|
| Tata Group | Raising $1.3B for BigBasket (quick commerce) & 1mg (healthcare) |
| IL&FS | Recovered โน45,281 crore; 197 of 302 entities resolved |
| Metropolis | Acquired Dehradun-based DAPIC for โน35 crore |
| Andhra Pradesh | โน4,200 crore released for Amaravati project |
| Delhivery | Acquired Ecom Express for โน1,407 crore |
| Mazagon Dock | Shares fell 8.39% as govt sold more stake |
| Bajaj Housing Finance | AUM up 26% YoY to โน1.14L crore |
| Glenmark | Appointed Anurag Mantri as new CFO |
| boAt | Filed confidential IPO papers |
| ITC | Bought 43.75% stake in Ample Foods (โน131 crore) |
| Tata Motors | Fell 5.34% after JLR paused US shipments due to tariffs |
Global Developments:
Commodity Crash:
- Brent Crude: Down 3% to $63.5 โ lowest since April 2021
- Gold: Dropped below $3,030
- Silver: Lost 16% in 3 days
- European Gas: Down 5% amid demand fears
Global Stock Markets:
- Japanโs Nikkei: Fell 7.8% โ worst since Oct 2023
- US 10Y Yield: Dropped to 3.9%, signaling recession fears
- SoftBank: To raise $4.1B via retail bonds
Key Insights from Experts:
Nilesh Shah, Kotak AMC:
- India could benefit long-term from US tariff shifts
- Short-term pain due to global tension likely
- India’s valuation relatively cheaper, may attract investors
Sonal Varma, Nomura:
- US tariffsโ indirect effect could trim Indiaโs GDP by 0.2โ0.3%
- FY26 GDP estimate: 6%, but with downside risk
- Trade war could trigger dumping & price pressures
Key Lesson:
“Global events can shake local markets overnight.”
Even a stable domestic outlook can’t protect markets from external shocks like geopolitical tensions or trade wars. Diversifying investments and preparing for volatility is essential for long-term investors.