Indian stock markets are set for a turbulent start as global jitters over Trump’s new tariffs weigh on. Early trends from GIFT Nifty point to a sharp drop of over 350 points, signaling a weak opening for Sensex and Nifty 50. Indian stock markets ended on a positive note in the previous trading session, with both benchmark indices posting gains on April 2. The Sensex surged 592 points, or 0.78%, to close at 76,617, while the Nifty advanced 166 points, or 0.72%, to settle at 23,332.
Global and domestic cues to know on April 3, 2025
Trump’s Tariff: A flat 10% duty on all imports
Starting April 5, Trump’s tariff policy introduces a universal 10% duty on all imported goods entering the US. This sweeping move aims to curb foreign reliance and boost domestic manufacturing. Industries ranging from automobiles to electronics and pharmaceuticals will face higher costs, potentially affecting global trade flows.
Trump’s tariff targets key trading partners
Beyond the blanket tariff, Trump’s tariff singles out 60 countries with significant trade imbalances. China faces the steepest hike at 34%, while India (26%), Japan (24%), and the European Union (20%) will also see major increases. These tariffs, effective April 9, 2025, aim to pressure trading partners into reducing their export advantage over the US.
Trump’s Tariff shake-up: Supply chain disruptions
With higher import costs, Trump’s tariff policies could upend global supply chains, hitting industries like automobiles, IT, electronics, and pharmaceuticals. Companies dependent on imports may pass costs onto consumers or shift operations to the US to sidestep duties.
Trump’s tariff sparks market turmoil
Financial markets reacted sharply to Trump’s tariff announcement, with Dow Jones futures plummeting over 1,000 points. The S&P 500 and Nasdaq fell by 3.9% and 4.7%, respectively.
Asian Markets
Asian stock markets tumbled as investors reacted to Trump’s sweeping tariff move. Japan’s Nikkei 225 fell sharply, while South Korea’s Kospi and Hong Kong’s Hang Seng futures pointed to a weak start. Markets across the region are seeing heavy losses, with key sectors like automobiles and electronics facing pressure due to higher US import duties.
US market
US stocks closed in the green after another turbulent trading day, as investors navigated the fallout from Trump’s tariff moves. The S&P 500 edged up 0.67% to settle at 5,670.97, while the tech-heavy Nasdaq Composite gained 0.87% to close at 17,601.05. The Dow Jones Industrial Average also ended on a positive note, rising 235 points, or 0.56%, to finish at 42,225.32.
Gold rate today
Gold prices soared to an all-time high on Thursday as investors rushed to safe-haven assets following US President Donald Trump’s tariff hike on major trading partners. Spot gold climbed 0.4% to $3,145.93 per ounce, after briefly touching a record $3,167.57 earlier in the session.
In India, according to Goodreturns, 24 carat gold rate today was at Rs 92,830 per 10 grams, while 22 carat gold stood at Rs 85,090. Meanwhile, 18-carat gold was available for Rs 69,620 per 10 grams.
US dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was at 103.10 on Thursday morning. The index evaluates the strength or weakness of the US dollar in comparison to major currencies. The basket contains currencies such as the British Pound, Euro, Swedish Krona, Japanese Yen, Swiss Franc, etc. The rupee settled at 85.50 against the US dollar on April 2.
FII, DII data
Foreign investors offloaded Indian equities worth Rs 1,539 crore on April 2. However, domestic institutional investors (DIIs) provided strong support, purchasing shares worth around Rs 2,809 crore, according to provisional data.
Crude oil
Oil prices dipped on Thursday, April 3. WTI crude fell 2.68% to $69.79 per barrel, while Brent crude dropped 2.53% to $73.05 per barrel.