Asian stock markets witnessed a sharp sell-off on Thursday (3 April) following US President Donald Trump’s announcement of fresh reciprocal tariffs on multiple Asian economies, including India. The move, which introduced a 26 percent tariff on Indian imports along with levies on China, Japan, and the European Union, triggered widespread uncertainty, leading to a significant downturn across major regional indices.
The impact of the tariffs was immediately reflected in Asian markets, with major indices posting steep losses. Japan’s Nikkei 225 suffered a sharp decline of 2.69 percent, while Hong Kong’s Hang Seng Index dropped 1.80 percent. South Korea’s KOSPI Index also witnessed a decline of 1.3 percent, reflecting investor concerns over the escalating trade tensions between the US and key Asian economies.
Back home, Indian equities were not spared from the global market turmoil. Gift Nifty futures indicated a weak opening with a 1.11 percent decline, setting the stage for a turbulent trading session.
As trading commenced, the BSE Sensex plunged over 800 points, opening at 75,811.12, marking a 1.05 percent drop. Meanwhile, the NSE Nifty 50 index shed 182.05 points, opening at 23,150.30, down 0.78 percent.
Market experts attributed the sell-off to a flight of capital from equities to safer assets like gold, which further exacerbated losses across stock indices.
Among sectoral indices:
Nifty Auto declined 1.25 percent,
Nifty IT slumped 1.67 percent,
Nifty Metals dropped 0.81 percent.
However, pharma stocks emerged as an outlier, gaining 2.95 percent, as Trump’s tariff announcements did not directly impact this sector.
The sell-off extended beyond traditional stock markets, with offshore funds reacting strongly. The offshore China Internet ETF plummeted 6 percent, while the Vietnam Offshore Country ETF saw an even steeper fall of 10 percent on Thursday morning.
The market rout was triggered by Trump’s latest round of tariff measures announced on Wednesday (2 April), imposing significant duties on key trading partners. India, specifically, was slapped with a 26 percent tariff, while similar levies were imposed on China, Japan, and the European Union.
With investors shifting focus to risk-free assets and concerns mounting over retaliatory trade measures from affected nations, analysts predict continued volatility in global markets in the coming days.
