Daijiworld Media Network - Mumbai
Mumbai, Apr 7: Indian equity markets witnessed a sharp sell-off on Monday morning, as mounting fears over upcoming US reciprocal tariffs sent shockwaves across Dalal Street. The benchmark indices Nifty 50 and Sensex plunged by 3.85 per cent and 4.16 per cent, respectively, during early trade, triggering panic among investors.
All major sectoral indices turned deep red, with the IT and metal sectors bearing the brunt, each declining by nearly 7 per cent. The broader BSE Midcap and Smallcap indices also faced heavy selling pressure, slipping by around 6 per cent.
Heavyweight stocks like Tata Steel, JSW Steel, Tata Motors, and ONGC were among the top laggards on the Nifty index.
Despite the bloodbath at the opening bell, markets witnessed some recovery later in the session as selective buying emerged at lower levels, calming nerves to an extent.
According to market experts, the bearish mood was anticipated, as reflected in the GIFT Nifty, which indicated a steep decline by hovering near 22,090, nearly 867 points lower than the previous close.
“The sentiment remains cautious, influenced by global uncertainties and absence of strong domestic cues. Investors are closely watching crude oil prices, global equity trends, and institutional flows for future direction,” analysts noted.
On the technical front, the Nifty 50 formed a bearish candle on the daily chart, signaling continued selling pressure near key resistance levels.
“Immediate support lies near 22,400 and 22,000, which could serve as potential reversal zones. On the upside, the index faces resistance at 23,000, with further hurdles seen at 23,100 and 23,400, should the market stage a rebound,” experts added.
The Bank Nifty also mirrored the trend, forming a bearish pattern and indicating heightened selling interest in the financial space.
On the institutional side, Foreign Institutional Investors (FIIs) continued their selling spree for the fifth consecutive session, dumping equities worth Rs 3,483 crore on April 4. Domestic Institutional Investors (DIIs), who had been net buyers for several sessions, also turned net sellers, offloading Rs 1,720 crore worth of stocks.
With global headwinds dominating the sentiment and volatility expected to persist, analysts advise investors to tread cautiously and keep an eye on global trade developments and policy statements in the coming days.