GIFT Nifty:

The GIFT Nifty April 2025 futures has plunged 260 points in early trade, flashing a red alert for the Nifty 50's opening bell. All signs point to a rough start on D-Street, as sentiment sours and the bears gear up to take control.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 3,483.98 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,720.32 crore in the Indian equity market on 4 April 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 11089.22 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 cratered by a jaw-dropping 880 points, setting the tone for what could be a turbulent day on the trading floor.

Asian market also registered significant losses following China's retaliatory tariffs in response to recent U.S. trade measures, deepening concerns about a prolonged trade conflict between the world's two largest economies.

Last week, President Donald Trump announced a 10% universal import tariff effective April 5. Additional tariffs targeting key trade partners, including China, Vietnam, Japan, and the European Union, are scheduled to take effect on April 9.

In retaliation, China imposed a 34% tariff on a range of American goods, marking a sharp escalation in trade tensions. The European Union, meanwhile, is seeking alignment among its member states to craft a coordinated response, potentially involving further countermeasures.

The escalating trade conflict has raised fears of a global trade war, with potential ramifications for international supply chains, inflation, and economic growth.

In Japan, the Nikkei 225 index fell as much as 9% on Monday, reaching its lowest level since early November 2023. Japan's export-driven economy, particularly in sectors such as automotive, technology, and manufacturing, is considered especially vulnerable to rising U.S. tariffs.

On Friday, U.S. markets had already reacted negatively to the trade developments. The Dow Jones Industrial Average declined 5.50%, marking its steepest drop in over three years. The S&P 500 fell 5.97%, and the Nasdaq Composite dropped 5.82%, with all three indices closing at six-month lows.

Despite mounting concerns, Treasury Secretary Scott Bessent downplayed fears of an imminent recession in a media interview. Federal Reserve Chairman Jerome Powell also emphasized that there is no immediate need for a change in interest rates. He noted that the administration's trade policies could simultaneously push inflation higher while slowing economic growth.

Meanwhile, March's nonfarm payrolls data provided a positive signal, coming in at 228,000 jobs added ' a notable increase from February's revised figure of 117,000.

Domestic Market:

Domestic equity benchmarks extended their losing streak for a second session, rattled by escalating global trade tensions. Concerns over global trade and economic growth deepened, dragging the Nifty50 below 22,910, with metals, pharma, and IT stocks bearing the brunt of the selloff.

The S&P BSE Sensex tanked 930.67 points or 1.22% to 75,364.36. The Nifty 50 index dropped 345.65 points or 1.49% to 22,904.45. In the two consecutive sessions, the Sensex and Nifty dropped by 1.64% and 1.83%, respectively.

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