World
India
Indian stock markets opened the week on a bearish note, taking cues from global markets rattled by rising trade tensions between the US and China. Concerns over potential tariff escalations, reportedly linked to former US President Donald Trump’s proposed measures, sent benchmark indices into a sharp nosedive on Monday morning.
By 9:24 am, the BSE Sensex had plummeted 2,564.74 points, sliding to 72,799.95. The NSE Nifty50 also suffered a heavy blow, slipping 831.95 points to trade at 22,072.50.
Rupee Stumbles to Weakest Opening Since February
Meanwhile, the Indian rupee recorded its steepest opening fall in almost two months. The domestic currency opened 41 paise lower at 85.65 against the US dollar, compared to its previous close of 85.24 on Friday, as per Bloomberg data. This marks its most significant drop at opening since February 10.
Despite a recent decline in global crude oil prices, the rupee’s depreciation has been largely attributed to heightened global risk aversion. The sharp dip comes after China imposed retaliatory tariffs of 34% on US goods, responding to the US’s steep 54% tariffs aimed at curbing Chinese exports.
So far in April, the rupee has weakened by 0.3%, following a 2.3% gain in March, reflecting a shift in investor sentiment amid renewed global economic uncertainty.
RBI Policy Meet in Focus
Traders and investors are also eyeing the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting beginning today. Market participants expect the RBI to address currency volatility and inflationary concerns in the upcoming review.
Anil Kumar Bhansali, Executive Director and Head of Treasury at Finrex Treasury Advisors LLP, remarked that the rupee is likely to trade in the 85.50 to 86.00 range throughout the day, with demand for the US dollar expected to stay strong during dips.
As geopolitical uncertainty deepens and global market volatility persists, both equities and currency markets in India are expected to remain under pressure in the short term.
Also Read: Delhi Witnesses First Hike In Nine Months, CNG Prices Surge By Rs 1 To Rs 3 Per Kg
