GIFT Nifty Today: Massive Crash Hits Indian Markets

As the week began with a bang, global equity markets were thrown into disarray as India’s GIFT Nifty had a massive drop of more than 900 points on April 7. It raised alarm bells for both investors and analysts. The decline was largely driven by global concerns. It was about increased geopolitical tension and worries about a trade war following U.S. President Donald Trump’s tariffs in retaliation against China.

Investors Alarmed by Global Market Decline

The carnage in the Indian market spilled over from the declines seen in global markets. Asian equities were under significant pressure. It was as both the Hang Seng and Taiwan indexes sank by almost 10% each. Japan’s Nikkei Index plummeted by 7.8% to levels not seen since late 2023. South Korea’s main index also dropped by 4.6%.

Wall Street futures were not immune either, as the S&P 500 fell by 4.31% and Nasdaq futures fell by 5.45% adding to a cumulative loss of almost $6 trillion the week before. Despite many signs of impending global doom, President Trump appeared unconcerned, responding, “I don’t want anything to happen.”

“However, sometimes medication is necessary to treat a problem.” His comments did little to ease investor concerns and were even nourishing the rising apprehension in the global financial community.

GIFT Nifty And Indian Indices

Followed Global Markets At 7:20 AM, GIFT Nifty was reported at 22,130, down 3.6% or more than 900 points. Analysts expect the Sensex and Nifty 50 to open significantly lower, indicating further escalation of turmoil in global markets. Both Sensex and Nifty 50 dropped 2.6% each last week, breaking key support levels. Nifty closed at 22,904, falling beneath the psychologically significant 23,000 level as selling pressure picked up.

Wider markets were impacted as well, with the Nifty Midcap 100 down by 2%, and the Nifty Smallcap 100 down by 2.6%. The damage was widespread with the IT and metal sectors taking the brunt of the selloff. The Nifty IT index fell by 9%, driven by worries about lower tech spend in the U.S., and the Nifty Metal index fell by 7.5%, as there were worries around global trade stoppages.

Technical Picture Provides Evidence of Bearish View

From a technical perspective, the recent fall, out of the consolidation area, has left traders and investors worried. “The index closing below its 20-day EMA represents a strong signal of a downtrend.” “The previous support levels are now acting as new resistance,” said Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities. The new support zone is anticipated to live between 22,800 and 22,700, a range that markets will watch closely in the upcoming sessions.

What Lies Ahead?

While global signals remain the predominant driver of sentiments, investors will now look to local factors for their cues. A significant event will be the RBI meeting. As the expectations for a rate cut have been heightened due to a global slowdown. A dovish monetary policy stance might provide some relief to the battered markets. Another significant factor will be the start of the Q4 reporting season.

Given that many companies are expected to report muted numbers due to global uncertainty, analysts suggest that the next few weeks may be crucial for influencing the investor mindset for the rest of the year. Moreover, expectations are provided by the potential easing of trade tariffs or any diplomatic initiatives behind the scenes between two of the largest economies. These developments would lend a glimmer of hope to equity markets which are currently tumultuous.

The market collapse of “Black Monday” provides insight into the deep interconnectedness of the global financial system. There will also be aspects of latest news on business that provide opportunities for potential policy responses and investing opportunities for longer-term investors. As India and the world goes into more instability, being aware and cautious will be critical to surviving the turbulence ahead.