Stock market trading guide, Apr 8: Trump warns China, Nikkei, FIIs, Q4 nos.
GIFT Nifty hinted at a gap-up start. As of 6:48 AM, GIFT Nifty futures were up 378 points at 22,642, compared to the previous Nifty futures close of 22,263.
 "Stock market trading guide, Apr 8: Trump warns China, Nikkei, FIIs, Q4 nos.")
Stock Market Today, April 8, 2025: US President Donald Trump’s new tariff threat to China, along with heavy selling by foreign institutional investors (FIIs) and mixed global cues, may influence the sentiments for key benchmarks, Sensex and Nifty50.
Meanwhile, GIFT Nifty hinted at a gap-up start. As of 6:48 AM, GIFT Nifty futures were up 378 points at 22,642, compared to the previous Nifty futures close of 22,263.
In a nightmare of a session, the Sensex fell 2,226.79 points (2.95 per cent) to close at 73,137.90, while the Nifty50 dropped 742.85 points (3.24 per cent) to end at 22,161.60.
Considering these factors, here are the top 5 cues for trading on Tuesday:
Global cues
Asia-Pacific markets started the day on a positive note, recovering from the previous session's losses driven by concerns over Trump's tariff policy and threats of even higher levies on China.
Last checked, ASX 200 was up over 1 per cent. Nikkei zoomed over 6 per cent, while Topix popped over 6.5 per cent. Also, Kospi rose 1.3 per cent.
Attention has now shifted towards Chinese stocks, particularly after Trump’s announcement on Monday that he would impose an additional 50 per cent tariff on China if Beijing did not remove its duties on US imports, effective April 9.
Notably, on Monday, Hong Kong's stock market suffered a sharp decline, plunging over 13 per cent—its steepest one-day drop since 1997, according to reports.
Overnight in the US, the Dow Jones dropped for a third day following Trump’s tariff rollout, slipping 0.91 per cent. The Nasdaq rose marginally by 0.10 per cent. The S&P 500 fell 0.23 per cent.
On the commodity front, Gold prices dropped over 2 per cent on Monday as investors flocked to the dollar amid concerns that US tariffs could trigger a global recession.
US oil prices also fell about 2 per cent, extending last week's sharp losses. US crude dropped $1.29 to $60.70 per barrel, while Brent lost $1.37 to $64.21.
Q4 results
Transformers and Rectifiers (India) and TeleCanor Global are set to mark the beginning of March quarter of financial year 2025 (Q4FY25) results season.
Also, the net profit of 19 listed banks is likely to decline by 4 per cent year-on-year (Y-o-Y) for the quarter ended March (Q4FY25) mainly due to pressure on net interest margins (NIM) as a result of rate cut by the Reserve Bank of India (RBI), according to analysts’ estimates.
Other domestic triggers
India's market capitalisation dropped by ₹14 trillion (over $160 billion) to ₹389.3 trillion ($4.54 trillion), marking the largest single-day decline in eight months. The decline brought the market to its lowest level since March 4.
The global market correction, triggered by Trump's tariffs on major economies, has raised concerns. While such corrections can attract new investors, analysts warn that event-driven sell-offs could lead to panic selling and a prolonged risk-off phase.
Besides, on the institutional activity front, FIIs net sold shares worth ₹9,040.01 crore, while DIIs net bought equities of ₹12,122.45 crore, on April 7.
In the IPO market, Infonative Solutions IPO (SME) and Spinaroo Commercial IPO (SME) list on the bourses. Also, Tata Capital and Imagine Marketing, the parent of Boat, have submitted their draft red herring prospectuses (DRHPs) to SEBI via the confidential filing route, as announced in separate newspaper ads on Monday.
Technicals
In the short-term, 22000/72400 would be the key level to watch. If the market manages to trade above this level, the pullback formation could continue up to 22500-22600/73800-74200. On the flip side, a dismissal of 22000/72400 may lead to further weakness. Below this level, the market could retest the 21800/71800 mark, and additional weakness may continue, potentially dragging the index down to 21650/71400, said Shrikant Chouhan, head of equity research at Kotak Securities.
Hrishikesh Yedve, AVP of technical and derivatives research at Asit C Mehta Investment said, on the upside, 22,800 will act as an immediate hurdle, while 21,960 will serve as crucial support. Considering the oversold market conditions, a pullback rally cannot be ruled out. However, for a fresh directional move, the index must decisively cross the 22,800 mark.
Stocks to watch
Titan: In Q4 business update, Titan revealed that its standalone business posted 25 per cent growth. Its jewellery business (domestic operations) zoomed 24 per cent, influenced by major gain in gold prices. Meanwhile, the EyeCare segment (domestic ops) showed 18 per cent growth.
BEL: The firm has bagged an order worth ₹2,210 crore for Electronic Warfare (EW) Suite from Indian Air Force
Lemon Tree Hotels: The hospitality company has inked a licence pact for a new hotel property, Keys Prima by Lemon Tree Hotels, in Darjeeling, West Bengal.