Market breadth stayed positive, as small- and micro-cap stocks managed to avoid the volatility. In sharp contrast, Nasdaq futures dropped 3%, China’s Hang Seng fell 2.5%, and Japan’s Nikkei declined by nearly 3%, while India appeared to remain relatively stable amidst the global market turmoil.

Bitcoin and other major cryptocurrencies experienced a decline following the announcement of escalating U.S. tariffs, sparking fears of a global trade war and economic slowdown. Investors shifted towards traditional safe havens like gold, causing market volatility and leading to significant drops in cryptocurrency values.

The 2024-25 financial year saw Indian equity markets hit highs followed by declines due to foreign investor outflows and weaker earnings. Despite volatility, Sensex and Nifty posted over 5% gains. FY26 offers growth opportunities in sectors like banking, infrastructure, and manufacturing, but challenges persist from global trade wars and market volatility.

Rahul Sharma from JM Financial Services suggests buying on dips as Nifty is poised for 24,000 and the risk-reward is favorable at 23,200-23,300. He also indicates potential uptrends in the Nifty next 50, banking, financials, and insurance sectors.

The Indian rupee opened at 85.77/$1, weakening 27 paisa after Trump imposed 26% tariffs on Indian imports. Traders expect a range of 85.50-86/$1. The dollar index softened to 102.7, while U.S. Treasury yields fell to 4.08% amid safe-haven demand.

Concerns over a U.S. recession have intensified due to President Trump’s tariffs, including a 26% duty on Indian imports. Analysts warn of a global economic slowdown, with rising inflation and potential trade wars. India s IT sector and exports face risks, while some sectors may find opportunities. The long-term impact of these tariffs remains uncertain.

Most experts believe the market will face short-term volatility, but the long-term structural outlook remains strong. Tariffs imposed across various regions are expected to increase global input costs, potentially driving U.S. inflation higher and complicating the Fed s planned rate cuts—something the markets had been depending on.

Trump s broad tariffs hit global trade, but Indian banks show resilience. US bond yields fall to 4.05%, aiding Indian lenders. India’s 10-year bond yield eases to 6.59%. Bank Nifty gains slightly. The US dollar index drops to 102.4, supporting emerging market fund inflows.

European shares hit a two-month low as new U.S. tariffs heighten economic growth concerns. Germany s stocks dropped 1.8%, with Wall Street futures down 3.1%. U.S. President Trump s tariffs impact trade with the EU and China. Eurozone banks fell 3.5%, Adidas and Puma plummeted over 9%, and luxury goods firms experienced declines. ECB rate cuts are now anticipated.