GIFT Nifty trips on the morning mat-RBI may cushion the fall

GIFT Nifty:

The GIFT Nifty April 2025 futures are hinting at a rocky start, down 76.50 points in early tradeflashing a not-so-subtle red signal for the Nifty 50 at the opening bell.

All eyes are on the Reserve Bank of India, which is set to announce its rate decision later today. Market watchers are betting on a second consecutive rate cut.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 4,994.24 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,097.24 crore in the Indian equity market on 8 April 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 23153.90 crore in the secondary market during April 2025 (so far). This follows their sale of shares worth Rs 6027.77 crore in March 2024.

Global Markets:

Dow Jones futures is down 253 points, indicating a drop in the US stocks today.

Most Asian stocks declined as U.S. President Donald Trump geared up to slap a jaw-dropping 104% tariff on Chinese goods. Oil prices took the hit too, tumbling to their lowest levels in four years as fears of a global recession tightened their grip on financial markets.

Late Tuesday, Washington confirmed that the tariff hike would take effect just after the stroke of midnight on Wednesday. The offshore yuan responded by hitting a record low of 7.4287 per U.S. dollar overnight.

Trump accused China of currency manipulation in a late-night press appearance but added that he still believed a deal would be struck eventually.

Analysts are now sounding the alarm bells, warning that this tariff escalation could tip the global economy into a full-blown recession.

Over in the U.S., the markets had a rough session. The Dow Jones Industrial Average fell 0.84%, weighed down by big names like Apple, which faces surging costs from the new China tariffs. The Nasdaq nosedived 2.15%, while the S&P 500 shed 1.57%narrowly dodging official bear market territory but still ending below the symbolic 5,000 mark for the first time since April 2024.

Domestic Market:

Domestic equity benchmarks bounced back sharply Tuesday, snapping a three-day losing streak, buoyed by upbeat global cues. Market anxiety eased as hopes grew that the ongoing US-China trade tensions may not significantly impact other major economies. The Nifty reclaimed ground, closing comfortably above the 22,500 mark. Bullish sentiment was broad-based, with all NSE sectoral indices ending in the green. Media, PSU banks, and consumer durables led the charge, drawing strong investor interest.

The S&P BSE Sensex soared 1,089.18 points or 1.49% to 74,227.08. The Nifty 50 index climbed 374.25 points or 1.69%, to 22,535.85. In the previous three trading sessions, the Sensex shed 4.54%, and the Nifty lost a staggering 5.01%.

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