Indian stock markets opened on a weak note on Thursday following the announcement by US President Donald Trump of a flat 25 per cent tariff on American auto imports, set to take effect from April 2, 2025.
The move, seen as a sharp escalation in trade tensions, has rattled global markets.
The NSE Nifty 50 index commenced trading at 23,422.45, marking a decline of 64.40 points or 0.27 per cent, while the BSE Sensex opened at 77,089.12, registering a loss of 199.38 points or 0.26 per cent.
Trump’s tariff decision is expected to have significant repercussions, particularly affecting key auto-exporting nations such as Canada, Mexico, Germany, South Korea, and Japan.
The anticipated global trade disruptions have heightened market uncertainty.
Market expert Ajay Bagga remarked, "25 per cent US Auto tariffs are the raging issue this morning. US auto maker stocks are down in post trading hours by 2 per cent to 6 per cent. Japanese and South Korean auto makers are down this morning in Asian trading by a similar 2 per cent to 4 per cent. Broader markets are digesting this news and the impending announcements of reciprocal global tariffs on April 2nd as well as sectoral tariffs on pharmaceuticals and semi-conductors."
Bagga further noted, "Indian markets will face the global disruption volatility as well as the domestic monthly expiry-related volatility today. Given the impending April 2nd announcements, markets will remain on edge. Caution continues."
Also read: Trump slaps 25 pc tariff on autos, expects $100 bn revenue
The Indian auto sector bore the brunt of the market jitters, with the Nifty Auto index declining by 1.37 per cent at the opening. Most sectoral indices remained under pressure, with the exception of Nifty FMCG.
Among the Nifty 50 constituents, IndusInd Bank and Trent emerged as top gainers, whereas NTPC, Tech Mahindra, CIPLA, and Axis Bank were the most affected stocks.
Axis Securities' Head of Research, Akshay Chinchalkar, provided a technical outlook, stating, "Yesterday's decline in the Nifty ended a seven-day winning run for the benchmark. The market also finished below the previous day's low, which means 23,869 is now an important swing high."
"The decline looks more like a retreat to the near-vertical advance we have seen recently, than the beginning of a larger downturn, for now. 23,275-23,402 offers support while resistance lies at 23,640 followed by 23,720. What's notable is that small- and midcap benchmarks are not as strong as the Nifty, which means sentiment is more guarded," he added.
Asian markets exhibited a mixed trend at the time of reporting.
Japan’s Nikkei 225, Taiwan Weighted, and South Korea’s KOSPI index registered declines, reflecting global concerns over trade disruptions.
Conversely, Hong Kong’s Hang Seng index bucked the trend, surging 1.28 per cent.
With volatility expected to persist in the coming days, investors remain wary of further retaliatory tariffs and broader market implications.
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