The stock market took a significant hit on Tuesday, with both the BSE Sensex and Nifty50 plunging as investors anxiously awaited details regarding the reciprocal tariffs that will come into effect on April 2. At around 10:59 am, the BSE Sensex had dropped 1,148 points, or 1.48%, settling at 76,266. Meanwhile, the Nifty50 was down by 274 points, or 1.16%, trading at 23,242. The declines came as investors digested concerns over the potential impact of the new tariffs, while the broader market reacted to uncertainty surrounding global trade.
Technical indicators revealed that Nifty50 had been holding support near the 23,400 level, as per Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates. According to Yedve, the index had formed a “red candle” on the daily chart, indicating downward pressure. However, the weekly chart showed a doji candle, suggesting that market participants were uncertain about the direction. Nifty faced resistance in the 23,800–23,810 range, and a breakthrough above 23,810 could push the market higher toward the 24,000–24,080 zone. On the downside, if the index remains below 23,400, it could face further declines towards the 23,200–23,000 levels.
Looking ahead, global markets are closely watching U.S. President Donald Trump’s reciprocal tariff announcements, which are expected to have a significant influence on stock market movements. The market’s future trajectory will largely depend on how these tariffs impact various sectors and countries. As of now, India has outperformed many other markets with a 6.3% return in March, driven by foreign institutional investors turning buyers. However, the next market movement will hinge on Trump’s tariff decisions. If the tariffs are lower than anticipated, it could trigger a rally, especially in sectors like pharmaceuticals and IT, which are closely linked to global trade. On the other hand, severe tariffs could lead to a downturn.
In other markets, Australian shares showed signs of recovery, gaining almost 1% driven by strong performances from banks and miners. As investors in Australia awaited an interest rate decision from the central bank, the S&P/ASX 200 index climbed by 0.8% to 7,904.7 points. Meanwhile, futures for the S&P 500 in the U.S. showed a 0.5% decline, while Japan’s Topix gained 0.7%. European markets also saw modest gains, with Euro Stoxx 50 futures rising by 0.2%. The global market sentiment remains uncertain, with investors awaiting key tariff details before making further moves.
