Sensex Crashes 500 Points, Nifty Below 23,200 As Trump’s 26% Tariff On Indian Goods Shakes Markets

Global markets are reeling from the fallout of the US Tariff decisions.

In India Trump has imposed a 26% tariff on all goods imported, citing "unfair trade practices." This move has triggered a sharp correction across major indices worldwide.

On Thursday, the  Indian stock market opened on lower note with   Sensex fell over 500 points at the opening bell, with Nifty trading below the crucial 23,200 mark.

In the US market,  Dow Jones Industrial Average futures plunged by 755 points (-1.79%), Nasdaq futures dropped over 3%, and S&P 500 futures fell by 2.79% following the announcement. Most Asian markets, including the Nifty, opened with significant losses, indicating widespread cautious sentiment among investors.

Technical and Derivative Insights
Sudeep Shah, Deputy Vice President & Head of Technical & Derivatives Research at SBI Securities highlight key technical indicators and derivative market movements that suggest heightened volatility and uncertainty in the near term.

"On Wednesday, the benchmark index Nifty index took support in the zone of 23160-23130 zone, which is the confluence of 20, 50-day EMA, and 38.2 percent Fibonacci retracement level of its prior upward rally. Thereafter it witnessed a pullback rally," Shah. The derivatives market saw mixed movements, with April futures up by 0.50% while open interest for the current series dipped by 0.74%.

Sectoral Impact and Investor Sentiment
Sector-wise, pharmaceutical stocks are expected to remain resilient amidst the market turmoil, buoyed by stable demand fundamentals. However, IT stocks are under pressure due to anticipated impacts on exports to the US, a key market for the sector.

‘While, Nifty IT is likely to continue its underperformance in the short term,’ as per SBI Securities. Other stocks will be Technical, Nifty India Tourism, Nifty PSU Banks, and Nifty Capital Market are likely to outperform in the short term.