The Indian equity markets are expected to open a gap-down following the global cues. According to market experts, 23,000 is the first critical support zone, if breached the index can fall as much as 22,800 as well.
Ajit Mishra, Senior Vice President of Research at Religare Broking said that a break below this level could intensify selling pressure, potentially dragging the index toward 22,800. Conversely, holding above this level would likely sustain the range-bound movement.
“If it (Nifty 50) falls below 23,150, selling pressure could intensify, potentially leading the market to retest levels around 23,000-22,950,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
On Thursday, the domestic markets were able to absorb the tariff shock. All eyes are now on Nifty 50 and Sensex after US and Asian markets continue to bleed.
US President Donald Trump’s reciprocal tariffs kicked in on Wednesday night after Wall Street closed, spilling over into Thursday’s trading.
The US has imposed significant reciprocal tariffs on its trade partners, including India. India will incur a tariff of 26% on its exports to the US. According to Trump, these tariffs are designed to counter what is perceived as unfair trade practices by other nations.
Markets recap
The NSE Nifty 50 dropped 82 points or 0.35% to close at 23,250, while the BSE Sensex ceased the session 322 points or 0.42% lower at 76,295. The Nifty IT was the worst hit among the sectoral indices on the back of growth concerns, falling 4.2% to 34,757.25 level. However, the Nifty Pharma soared due to exemption from the tariffs.