Indian stock markets are bracing for a rough start as global concerns over US President Donald Trump’s new tariffs continue to weigh on sentiment. Early trends from GIFT Nifty indicate a weak opening for Sensex and Nifty 50. On April 3, the Nifty 50 slipped 0.35% to 23,250.1, while the Sensex dropped 0.42% to 76,295.36.
Global and domestic cues to know on April 4, 2025
Trump’s tariffs shake global trade
US President Donald Trump’s latest tariffs have sparked concerns across global markets, hitting major economies like India, China, Japan, and Vietnam. Aimed at cutting trade deficits and boosting US manufacturing, the steep duties, going up to 46% on some imports, could also push up costs for American businesses and disrupt supply chains. As industries prepare for the impact, countries like the European Union, China, and Canada are considering countermeasures, setting the stage for tense trade negotiations in the coming weeks.
Trump’s new tariff rules
Starting April 5, the US will slap a 10% tariff on all imports. But that is just the beginning – 60 countries with high trade imbalances will face even steeper hikes. China bears the brunt with a 34% tariff, while India (26%), Japan (24%), and the European Union (20%) are also in the crosshairs. Set to take effect on April 9, 2025, these tariffs are expected to fuel trade tensions, push up costs, and trigger reactions from affected nations.
US market
Wall Street took a heavy hit on Thursday, with the S&P 500 tumbling 4.84% to 5,396.52, its worst day since June 2020 after President Donald Trump announced sweeping tariffs, sparking fears of a global trade war and recession. The Dow plunged nearly 1,680 points to 40,545.93, while the Nasdaq suffered a steep 5.97% drop to 16,550.61. More than 400 S&P 500 stocks ended in the red.
Asian markets
Asian markets extended their losses on Friday, echoing Wall Street’s sharp decline after Donald Trump’s tariff announcement. Japan’s Nikkei 225 fell 2.07%, while the Topix dropped 2.69%. Australia’s ASX 200 slipped 1.06%, and South Korea’s Kospi lost 1.15%. The smaller Kosdaq index also dipped 0.68%, as investor anxiety gripped the region amid rising economic uncertainty.
Gold rate today
On April 3, gold soared to a new record, briefly hitting an intraday high of $3,167 before settling around $3,128. .
Today, April 4, gold prices in India remained strong, with 24-carat gold priced at Rs 93,390 per 10 grams and 22-carat gold rate today at Rs 85,610, according to Goodreturns. Meanwhile, 18-carat gold was available for Rs 70,050 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 101.81 on Friday 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 85.44 against the US dollar on April 3.
FII, DII data
On April 3, as the US government announced reciprocal tariffs, foreign institutional investors (FIIs) offloaded Rs 2,806 crore worth of equities, extending the selling spree in Indian markets. However, domestic institutional investors (DIIs) provided some support, making net purchases of Rs 221 crore.
Crude oil
On April 4, oil prices saw a slight decline, with WTI crude slipping 0.58% to $66.56 per barrel and Brent crude falling 0.52% to $69.78 per barrel.