Donald Trump has threatened to impose 100% tariffs on goods imported from China from November 1, 2025. This announcement has caused a huge decline in the stock markets of America and China. Indian investors are now worried about this and are wondering what will happen when the Indian market opens on Monday.
Trump’s decision to impose 100% tariff has sparked a trade war between China and America. There is a fear that China may also respond to this move of America. If this happens, a trade war may break out between the world’s two largest economies, which is not good for the world. As a result, there are fears that stock markets around the world, including India, may see a huge fall on Monday.
Huge decline in American stock market
Wall Street saw a huge fall on Friday. The S&P 500 and Nasdaq posted their biggest one-day declines since April 10. The Dow Jones Industrial Average fell 1.90 percent to 45,479.60, the S&P 500 fell 2.71 percent to 6,552.51 and the Nasdaq Composite dropped 3.56 percent to 22,204.43. Trump announced additional 100 percent tariffs on Chinese imports and new export controls on critical US software. This led to a huge fall in the shares of major tech companies, with shares of major companies like Nvidia, Tesla and Amazon falling by more than 2 percent.
Indian markets are showing signs of gap-down
Last seen, Nifty was trading 0.78 per cent lower at 25,205, indicating a possible gap-down opening. This is despite last week’s strong performance, where both the Sensex and Nifty were up around 1.5 per cent. According to a report in Business Today, Ponmudi R, CEO of Enrich Money and SEBI-registered expert, said that the market direction in the coming week will depend on a combination of domestic factors, global macroeconomic trends and corporate earnings.
What did the expert say?
Ponmudi said re-escalation of the US-China tariff war is likely to impact global risk perception. This increase in trade tensions could weigh on the dollar, putting further pressure on emerging markets stocks and currencies. Ponmudi said that on the corporate front, all eyes will be on the IT sector, where major companies like Infosys, HCL Tech and Tech Mahindra are scheduled to announce their second quarter results.
Ponmudi said Nifty is continuously showing resilience and forming a higher-low structure above the important 25,000-24,850. “Trendline support and strong put writing have helped the index withstand volatility and maintain its uptrend,” Ponmudi said. “On the upside, heavy call open interest between 25,300-25,400 has created a near-term barrier along the long-term sloping resistance line. A decisive close above 25,500 could rekindle the bullish momentum and confirm a higher-high structure, opening the way towards 25,700-25,900.”
