Stock Market Today: Global Tariff War and RBI Rate Cut

Friday, 11th April 2025

Time : 8:45 AM IST

Insights: Stock Market Today and the Global Impact

1. Stock Market Today: Nifty fell by 136 points on Wednesday to settle at 22,399.
2. RBI lowered its repo rate by 25 basis points to 6%, as widely forecasted. It has also cut the FY26 GDP growth forecast from 6.7% to 6.5%, on account of uncertainty created by Trump’s tariff actions.
3. Trump imposed a 90-day tariff suspension on all nations with the exception of China. Yet the 10% baseline tariff continues to apply to all.
4. In a major escalation, Trump increased tariffs on China to an whopping 145%.
5. The European Union also decided to pause tariffs on the US for 90 days.
6. US markets on Wednesday experienced a strong rally. The Nasdaq jumped by almost 12%, and this had an overall positive impact on Asian markets too.
7. Japan’s Nikkei rose by nearly 9%, and the markets in Europe also closed on an upnote with an appreciation of 4–5%. The GIFT Nifty signaled an 800-point gap-up in Indian markets at one stage.
8. But the mood turned sour when the US imposed 145% tariffs on China and Trump made aggressive statements on tariffs. All this made US markets fall once more.
9. US markets eventually closed in the red. The Dow Jones Industrial Average dropped by 2.5%, while the Nasdaq tumbled by nearly 4.3%.
10. In the wake of the US decline, Asian markets are trading down today too. Japan’s Nikkei shed almost 4%, and South Korea’s KOSPI dipped by some 1%.
11. The GIFT Nifty, which had indicated an 800-point gap-up earlier, is currently showing a 450-point gap-up opening for the Indian markets. The decline is an effect of the fall experienced in US markets overnight.
12. Foreign institutional investors (FIIs) were net sellers on Wednesday and sold around Rs 2,900 crore in the cash market. They closed out 7,500 long positions and increased their net short positions to 78%.
13. TCS announced its Q4 figures, which were below expectations in the market. Consequently, the majority of broker firms have cut price targets. TCS has already fallen by nearly 25%, from the level of Rs 4,300 in January to its current price of Rs 3,200 levels amid fears of recession in the US.
14. Support on the Nifty is to be found at 22,300 and resistance at 22,800.