Black Monday: Gift Nifty Indicates Drastic Sell-Off as Asian Markets Drop to Multi-Year Lows
Indian share markets are poised to plunge sharply on Monday, tracking a global sell-off across equities. The benchmark indices, Sensex and Nifty 50, would open substantially lower as Asian stocks plummet and the Wall Street plummeted on heightened concerns of an impending global economic downturn, as trade tensions between the US and China intensified.
Gift Nifty Points to Gap-Down Opening
The Gift Nifty is around the 22,083 mark, reflecting a gap-down opening of over 3% in the Nifty 50 index. This is a discount of almost 875 points from the previous close of the Nifty futures, forcefully indicating a Black Monday for Dalal Street.
Global Cues: Asian Markets Plummet
Asian stock markets experienced a huge sell-off on Monday, with the MSCI Asia ex-Japan index declining 6.5%, as investor sentiment turned weak sharply amid growing fears of a US recession. These fears were added to by President Donald Trump's surprise and severe tariffs, as well as China's retaliatory actions.
- Japan's Nikkei 225 fell up to 8.8%, the lowest in 1.5 years, with all 225 stocks in the red. Japanese futures trading was briefly suspended by circuit breakers.
- The Topix index fell 8%.
- China's CSI300 fell 4.5%, and Hong Kong's Hang Seng fell 8% in initial trade.
- South Korea's Kospi fell more than 4%, with the Kosdaq falling over 3%.
- Singapore's Straits Times Index opened 7% lower, set for its worst session since March 2020.
- Malaysia's market dropped more than 4%, hitting a 16-month low.
- Taiwan's benchmark index crashed close to 10% on its first trading day since the tariff announcement.
Wall Street Extends Losses
The carnage comes after a savage week on Wall Street, where leading indices recorded heavy losses:
- S&P 500 futures down 4.2%
- Dow Jones Industrial Average futures down 3.5%
- Nasdaq futures plummeting 5.3%
The selling highlights the increasing concern in financial markets about the global economic scenario, with fears of recession being at the forefront.
Investor Outlook
As Gift Nifty and overseas indicators suggest a huge gap-down opening, Indian investors need to prepare for high volatility and possible sharp intraday falls. Experts recommend caution and seeking advice from certified professionals before taking investment decisions at such volatile times.
Disclaimer: The opinions and suggestions in this article are those of individual analysts or brokerage houses. Kindly consult a qualified financial advisor before making any investment decision.
