Indian benchmark indices NIFTY50 and SENSEX are expected to open on a positive note on Tuesday, mirroring strong gains in Asian markets. As of 7:40 AM, GIFT Nifty was trading at 22,656, up by 336 points or 1.51%, indicating a gap-up start for domestic equities.
The optimism in Asia comes despite a volatile session on Wall Street. The S&P 500 closed 0.2% lower, while the Dow Jones Industrial Average declined by 0.9%. The Nasdaq composite index managed a slight gain of 0.1%. However, intraday volatility in U.S. markets was high, with the Dow plunging as much as 1,700 points and the S&P 500 falling nearly 4.7% at one point.
Asian markets rebounded sharply. Japan’s Nikkei 225 surged 6.59% to 33,187, while South Korea’s KOSPI climbed 1.54% to 2,364. Hong Kong’s Hang Seng index jumped 2.9% to 20,403. The sharp recovery suggests investor optimism in the region despite global trade concerns.
The rebound followed renewed trade tensions after U.S. President Donald Trump warned of imposing significantly higher tariffs on Chinese imports. Trump’s comments came after China retaliated with an additional 34% tariff on U.S. products, escalating the long-standing trade dispute between the world’s two largest economies.
Trump threatened to impose a 50% tariff on Chinese goods starting April 9 if China does not withdraw its retaliatory measures by April 8. He also announced the termination of ongoing tariff negotiations with China, adding that talks with other countries would commence immediately.
While global trade tensions remain a looming risk, the strong rebound in Asian equities suggests that markets may have priced in the latest rhetoric and are betting on further developments. Indian markets are likely to take cues from global trends, particularly Asian strength, in early trade.
Investors should brace for heightened intraday volatility, but near-term sentiment appears buoyant, especially with strong cues from Japan, South Korea, and Hong Kong.
