Indian Stock Market Faces Weak Start Amid Trump-Powell Tensions, Global Sell-Off

Markets brace for volatility as Gift Nifty trades in the red, Wall Street tumbles, and gold continues its rally on safe-haven demand.

Mumbai, April 22, 2025 –
The Indian stock market is poised for a subdued start on Tuesday, following negative cues from global markets and simmering political tension in the US.

Benchmark indices Sensex and Nifty 50, which surged on Monday for a fifth straight session, may take a breather today as Gift Nifty trades at a 52-point discount, indicating a cautious open.

Also Read: Nifty, Sensex Rally for 5th Day: Market Soars on Bank Earnings, Trade Optimism, and Rate Cut Hopes

On Monday, the Sensex jumped 855 points to close at 79,408.50, while the Nifty 50 gained 273.90 points to finish at 24,125.55.

“Nifty has closed above the 200-DMA of 24,051, which signals strong bullish sentiment. The ongoing US-China tariff war could prove to be a strategic opportunity for India,” said Prashanth Tapse, Senior VP at Mehta Equities.

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🌍 8 Key Global Market Cues Impacting Today’s Trade:

1. Gift Nifty Signals Weak Start

Also Read: Is This the End of the Salaried Middle Class? Market Expert Predicts Dramatic Shift in Indian Economy

Gift Nifty was trading around 24,083, nearly 52 points lower than Nifty futures’ previous close, suggesting a negative opening for Indian indices.

2. Wall Street Slumps Amid Trump’s Fed Criticism

Major US indices plummeted on Monday after President Trump lashed out at Fed Chair Jerome Powell, calling for immediate rate cuts.

Also Read: Cognizant CEO Ravi Kumar’s 2024 Pay Package Set at ₹137 Crore, Here Are His Real Earnings

• Dow Jones: ↓ 971.82 pts (2.48%)
• S&P 500: ↓ 124.50 pts (2.36%)
• Nasdaq: ↓ 415.55 pts (2.55%)

Big tech took a hit:

• Nvidia: ↓ 4.5%
• Tesla: ↓ 5.8%
• Amazon: ↓ 3.11%
• Apple: ↓ 1.94%

3. Trump’s Harsh Words on Powell

Trump slammed Powell again on Truth Social:

“There can almost be no inflation, but there can be a slowing of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.”

4. Asian Markets Trade Lower

• Nikkei 225: ↓ 0.4%
• Kospi: ↓ 0.34%
• Hang Seng Futures: Indicate weak open
  Overall, Asia followed Wall Street’s decline.

5. Gold Hits New Record High

Amid risk-off sentiment:

• Spot gold: $3,429.03/oz (↑ 0.1%)
• US gold futures: $3,439.70/oz (↑ 0.4%)
  Earlier in the session, prices hit $3,443.79, an all-time high.

6. Dollar Slides Near 3-Year Low

The US Dollar Index stood at 98.45, after falling to 97.92 — its lowest since March 2022, making gold and emerging markets more attractive.

7. RBI Eases LCR Norms

The RBI eased Liquidity Coverage Ratio norms for digitally linked deposits, reducing the buffer to 2.5%, giving banks a liquidity boost by 6 percentage points.

8. Core Sector Growth Holds Steady

India’s Eight Core Industries index rose 3.8% YoY in March 2025. Full-year growth stands at 4.4%, indicating sustained industrial activity.

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Indian stock market, Nifty 50, Sensex, Wall Street, Trump Powell dispute, Gift Nifty, Gold prices, RBI news, Dollar index, Asian markets, market outlook, LCR norms, core sector data, interest rates, Jerome Powell, US-China trade war