Indian stock markets opened with losses, reversing earlier gains. Both the Sensex and Nifty dropped in early trade on Wednesday. This decline followed weak global cues after former US President Donald Trump warned of a 104% tariff on Chinese goods. His statement signaled continued uncertainty in global trade.
Key Indices Open in Red
The NSE Nifty 50 index fell by 75.55 points, or 0.34%, to open at 22,460.30. Similarly, the BSE Sensex started at 74,103.83, down by 123.25 points or 0.17%. Experts said the global reaction to Trump’s tariff warning played a key role in dragging Indian markets.
Focus Shifts to RBI MPC Meeting
Despite the global worries, domestic attention turned to the Reserve Bank of India’s Monetary Policy Committee (MPC) announcement expected later in the day. Banking and market expert Ajay Bagga told ANI, “In all the Tariff tumult, there has been little focus on the MPC meeting outcome this morning. RBI has commendably moved on the path of monetary easing using the triple arrows of Rate Cuts, Liquidity injection and macro prudential easing. We expect continuity on easing and these steps today, expect a rate cut of 0.25 per cent.”
No CRR Cut Expected
He added that the RBI had already injected liquidity, making a CRR (Cash Reserve Ratio) cut unnecessary. He also noted, “Inflation number stays as per last meeting, nothing moving it up, crude oil move down has been too recent and has not flown through to end users as the govt has focussed on LPG subsidy recovery via excise duty hike for now. Growth number stays constant, though tariff tumult will lead to a hit to GDP for FY26 if there is no relief.”
Asian Markets Also Fall
Meanwhile, most Asian markets opened in the red. Japan’s Nikkei 225 dropped by 3.66%, while Taiwan’s Weighted Index was down more than 4%. Hong Kong’s Hang Seng index fell by 1.52%, and South Korea’s KOSPI index declined by 1.40%.
Nifty May Face Pressure Without Strong Close
Akshay Chinchalkar, Head of Research at Axis Securities, said Indian markets need a strong close to regain momentum. “The Nifty’s rebound yesterday needs to do more for bulls to extend their optimism. Unless we close above 22857, the bias will be weak. For the day, support lies in the 22236-22292 zone. For this week, bulls have to ensure a close over 22150, else the recent lows will again come under threat,” he explained.
US Markets End in Deep Red After Initial Gains
US stock markets began the previous session with strong gains. Optimism rose as discussions on tariff deals with South Korea and Japan surfaced. However, concerns over China’s looming 104% tariffs led to a sharp reversal.
Eventually, the S&P 500 recorded a fourth straight day of losses. It dropped 1.57%, while the Nasdaq declined by 2.15%. Over the four-day slump, the S&P 500 lost 12%, wiping out more than USD 10 trillion in market capitalization.
