It’s a jittery start to the week for Dalal Street. The Sensex slumped nearly 400 points in early trade on Monday, while the Nifty slipped below 25,200, tracking a global sell-off triggered by fresh trade war fears between the US and China.
President Trump’s announcement of a 100% tariff on all Chinese goods starting November 1 sent shockwaves through global markets over the weekend. Though he later toned it down—saying the US doesn’t want to “hurt” China—investors are in no mood to take chances.
Across Asia, markets opened lower, and India wasn’t spared either. Profit booking after last week’s gains and cautious sentiment ahead of key domestic events like the Tata Capital listing, Q2 earnings, and inflation data added to the drag.
Among Nifty50 stocks, Indigo, Max Health, Bajaj Auto, Bharti Airtel and Asian Paints were among the few gainers, while ONGC, Tata Motors and Adani Enterprises led the losers’ pack.
VOLATILITY LIKELY TO RISE
Market expert Anand James, Chief Market Strategist at Geojit Financial Services, said traders should brace for more choppiness.
“We begin the week with upside capped near 25,460. Volatility is likely to rise as the week progresses. Support lies at 25,230, and a fall below 25,113 will force us to step away from upside plays,” he said.
According to Ponmudi R, CEO of Enrich Money, Indian equities are likely to stay cautious as global uncertainty dominates headlines.
“Even though Trump softened his tone later, the fear of another trade war has spooked investors. But beyond short-term volatility, key triggers like Q2 earnings, inflation data, and the strong IPO pipeline will drive sentiment,” he said.
He added that the robust investor demand for recent IPOs like Tata Capital and LG Electronics India shows that domestic liquidity and retail participation remain healthy.
SHOULD INVESTORS WORRY?
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the panic may be temporary. “The market seems to believe this is just another round of sabre-rattling between the world’s two biggest economies,” he said.
He pointed out that Foreign Institutional Investors (FIIs) have bought equities worth over 3,200 crore in the past four sessions, helping Indian markets stay resilient.
“Domestic consumption themes that aren’t affected by global trade shocks will continue to attract institutional interest,” he added.
So, why is the stock market falling today? It’s a mix of global trade tensions and profit booking. The fundamentals remain intact, but traders are nervous—and in a market this sensitive, all it takes is one tariff tweet to shake things up.
For now, investors are playing it safe. But with a strong IPO pipeline, earnings season, and inflation numbers lined up, the coming week could easily swing the other way.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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