After former President Trump's announcement of reciprocal tariffs, China retaliated with a 34% tariff on US products, effective April 10, 2025. This escalated trade tensions sent global equity indices into a sharp decline, marking the worst drop in the S&P 500 since the pandemic's peak in March 2020. The Dow Jones Industrial Average is now down over 15% from its recent peak, while the Nasdaq has fallen over 22%, officially entering bear market territory (a decline of more than 20%). Domestic equity markets were already facing challenges, down over 16% from their peak. Despite some correction in recent sessions, the situation has become more uncertain. Gift Nifty signals a gap-down opening for next week, as global markets extend their losses into the week’s final trading session. Will Indian Markets Follow Global Downturn? With such significant declines in global markets, the big question remains—will Nifty, Sensex, and Bank Nifty hold the lows from March 2025? Or could we see even lower levels, possibly hitting June 2024 lows? Will the upcoming earnings season offer a buffer to absorb the global shock, or will the Indian market follow Nasdaq into bear market territory? Disclaimer: This post is for informational purposes only and does not constitute investment advice.

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