Read More
India's benchmark Nifty 50 is poised to open sharply lower on Monday, as concerns over a global trade war and growing recession fears in the US triggered a stock market rout on Wall Street and in other Asian markets.
ADVERTISEMENT
SCROLL TO CONTINUE WITH CONTENT
The GIFT Nifty futures were trading at 22,089 as of 7:55 a.m. IST, indicating that the blue-chip Nifty 50 will open about 3.6 percent lower than Friday's close of 22,904.45.
Other Asian markets slumped, with the MSCI Asia ex-Japan index losing 6.2% percent. Japan's Nikkei 225 dropped 6 percent in early trade.
The Nasdaq index confirmed it entered a bear market on Friday, as oil prices and other commodities plunged amid a massive global market decline following US President Donald Trump's announcement of sweeping tariffs on Wednesday.
"We see the recent lows around 21,800 get re-tested on the Nifty 50 given this week's price action," said Abhishek Goenka, founder & chief executive officer of India Forex & Asset Management.
"We remain cautious in the near term given the tariff-related uncertainty."
Trump's new tariffs are "larger than expected", and the economic impact on inflation and growth will be likely, said Federal Reserve Chair Jerome Powell on Friday, flagging an uncertain outlook on the US economy.
The worries of a potential recession in the US have led to investors wagering a 25-basis-point additional rate easing in 2025 by the US Federal Reserve.
India's central bank will deliver its policy decision on Wednesday and is widely expected to cut rates by 25 bps amid expectations that monetary policy may turn more supportive as US tariffs threaten to hurt the economy.
India's Nifty 50 is trading about 13 percent lower than the record high levels hit in late September, as slowing earnings and growth triggered a US$27-billion (HK$210.6 billion) foreign exodus from domestic markets.
REUTERS
