Indian Markets Brace for Volatility: 8 Key Overnight Cues From Gift Nifty to Trump’s Tariff Shock

As Trump’s “Liberation Day” tariffs take center stage, here’s what moved global markets overnight—and how it could shape India’s market open today.

April 2, 2025: The Indian stock market is poised for a cautious start on Wednesday following mixed global cues and heightened investor anxiety over US President Donald Trump’s reciprocal tariffs, which go into effect today.

Also Read: Vodafone Idea Soars 26% After Govt Converts ₹36,950 Cr Dues to Equity — Is It Time to Buy?

The Gift Nifty index was trading at 23,312, indicating a flat to slightly negative opening, as it stood about 9 points below the previous Nifty futures close.

Here are 8 key overnight developments that could impact Sensex and Nifty:

Also Read: ‘India Will Drop Tariffs Substantially’: Trump’s Bold Trade Statement Ahead of ‘Liberation Day’

1. Asian Markets Mixed

Markets across Asia traded with limited movement:

Nikkei 225: +0.06%
Topix: -0.3%
Kospi: +0.14%
Kosdaq: +0.12%
Hang Seng futures: Indicated a weaker open

2. US Market Reaction to Tariff Buzz

Also Read: Trump’s Tariffs Target Indian Exports: Liquor, Meat & Sugar Among Worst-Hit Sectors

Wall Street closed on a mixed note:

Dow Jones: -11.80 pts (-0.03%) at 41,989.96
S&P 500: +0.38% at 5,633.07
Nasdaq: +0.87% at 17,449.89

Major tech stocks like Tesla, Amazon, Microsoft, and Meta led gains. However, Johnson & Johnson slumped 7.6%, while airline stocks dropped as much as 5.9%.

3. Trump’s “Liberation Day” Tariffs

The White House confirmed that new tariffs will be imposed immediately today, impacting all nations that currently levy duties on US goods.

Auto tariffs (25%) will start April 3
India is expected to lower its own tariffs significantly, Trump hinted on Tuesday.

4. US Job Openings Slide

The JOLTS report showed a decline in job openings to 7.568 million, down 194,000 from January.
This adds to concerns over slowing labor demand due to rising uncertainty in global trade.

5. US Manufacturing Weakens

The ISM Manufacturing PMI dropped to 49.0 in March, indicating contraction and missing expectations.
Factory-gate inflation, however, rose to its highest in nearly three years, a potential concern for upcoming rate decisions.

6. Gold Surges to Record High

Spot gold rose 0.3% to $3,120.64/oz, after hitting an all-time high of $3,148.88.
US futures climbed to $3,151.80 as investors turned to safe-haven assets ahead of tariff uncertainty.

7. GST Collections Stay Robust

India’s March GST collection rose 9.9% YoY to ₹1.96 lakh crore.
Net GST revenue after refunds stood at ₹1.76 lakh crore—a healthy 7.3% annual growth.

8. Gift Nifty Hints at Flat Open

Gift Nifty’s slight discount to previous close (23,312 vs 23,321) signals a muted opening, reflecting caution among traders.

📉 Outlook

According to Prashanth Tapse of Mehta Equities, investors trimmed positions fearing a deterioration in India’s trade advantage. The Sensex on Tuesday crashed 1,390 points—the worst start to a financial year in recent memory.

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Misha Bhatia