Pre-Market Setup: GIFT Nifty futures down 300 pts; markets likely to open in red

Indian equity markets are set for a weak start on Thursday, with GIFT Nifty indicating a significant gap-down opening. Global uncertainty, triggered by US President Donald Trump’s aggressive reciprocal tariffs, has intensified risk-off sentiment, leading to a sell-off across Asian markets.

GIFT Nifty signals a gap-down opening

GIFT Nifty on the NSE IX traded lower by 301 points, or 1.28 per cent, at 23,129.50, suggesting that Dalal Street is poised for a bearish start. Investors remain cautious as markets digest the impact of fresh trade policy announcements from the US.

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Technical view: Key levels to watch

Nifty recently tested the lower end of its trading range and closed near critical support. A break below 24,900 could trigger further downside towards the 24,700 level. On the upside, immediate resistance is seen at 25,100, followed by 25,250.

India VIX drops, but volatility remains high

The India VIX, a key measure of market volatility, dipped 0.4 per cent to settle at 13.72 levels, indicating a slight reduction in fear. However, with global markets under pressure, volatility could pick up in the coming sessions.

Wall Street ends higher despite choppy session

US stocks closed in positive territory after an uncertain trading session. Investors repositioned ahead of Trump’s tariff announcement, leading to a late rebound.

• Dow Jones: +0.56%

• S&P 500: +0.67%

• Nasdaq: +0.87%

Asian markets tumble on trade war concerns

Asian equities witnessed sharp declines as investors turned risk-averse in response to US trade policies.

• S&P 500 futures: -3.4% (9:02 a.m. Tokyo time)

• Japan’s Topix: -1.9%

• Australia’s S&P/ASX 200: -1.8%

• Euro Stoxx 50 futures: -0.5%

Gold soars, oil tumbles amid global uncertainty

Gold prices hit a record high as investors flocked to safe-haven assets. Meanwhile, oil prices sank $2, reflecting fears that escalating trade tensions could weaken global demand.

Rupee and FII/DII action

The rupee settled 2 paise lower at 85.52 against the US dollar as uncertainty over trade tariffs weighed on sentiment. FIIs remained net sellers at Rs 1,539 crore, while DIIs provided some support with Rs 2,808 crore in net purchases.

With global markets under pressure and domestic indices facing key technical levels, traders should brace for heightened volatility in the near term.