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The Indian stock market witnessed intense turbulence on Monday, April 8, following global worries about trade tariffs introduced by U.S. President Donald Trump.
The tension spilled over into domestic markets, leading to one of the worst opening drops in recent times. Sharp Opening Drop Hits Markets The trading day began with a steep fall as the Nifty 50 index opened 5% lower, making it the worst opening since March 23, 2020—a day still remembered for the COVID-related crash. However, despite the early bloodbath, the index managed to bounce back from the day’s lowest levels and closed 742 points or 3.
24% lower at 22,161. The BSE Sensex also saw heavy selling, losing 2,226 points to end the session at 73,137. Meanwhile, the Bank Nifty index dropped 1,642 points, closing the day at 49,860.
Broader Markets Also Take a Hit It wasn’t just the big stocks that were hit. The broader market also experienced what traders are calling a “Black Monday.” The BSE Small-cap index tumbled 4.
13%, and the Mid-cap index wasn’t far behind with a 3.46% drop. Adding to the anxiety, the India VIX—the market’s volatility gauge—skyrocketed over 65%, ending at 22.
79, reflecting extreme fear among investors. Experts Predict Continued Volatility Market experts believe that the Indian stock market will likely remain unstable for a while, given the global uncertainties surrounding trade policies. “We expect the Indian stock market to remain volatile due to ongoing global trade tension and potential further developments on the US tariff front,” said Siddhartha Khemka, Head of Research – Wealth Management at Motilal Oswal.
Technical View: What’s Next for Nifty and Bank Nifty? From a technical standpoint, the Nifty’s short-term direction remains negative, though there are signs of support at lower levels. “The underlying trend of the Nifty 50 index is sharply negative with high volatility. Monday’s swing low of 21,743 could now be considered important support for the short term, and one may expect buying to emerge from the lower levels.
Immediate resistance for the Nifty today is placed at 22,400,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. The Bank Nifty managed to hold an important technical level, giving hope for a possible bounce. “The Bank Nifty index defended the 50-Day Exponential Moving Average (50-DEMA) support placed around 49,500 and formed a green candle on the daily chart, indicating strength at lower levels.
On the upside, the 50,650 to 50,750 zone will act as a key resistance area. A sustained move above 50,750 will trigger a fresh rally in the index,” explained Hrishikesh Yedve, AVP – Technical and Derivatives Research at Asit C. Mehta.
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