Trump’s Tariff Policy Sends Global Markets into Turmoil

Global markets are experiencing significant upheaval as a result of U.S. President Donald Trump's aggressive tariff approach. This has led to abrupt changes across key stock indices. On Friday, the Dow Jones Industrial Average plummeted by 715 points, while the Nasdaq Composite, heavily influenced by technology companies, saw a decline of 480 points, indicating widespread concern among investors. Although some recovery occurred on Monday with the Dow rebounding by 1,000 points and the Nasdaq climbing nearly 500 points from their lowest levels, the fear lingers.

Market expert Anil Singhvi has issued a strong warning to investors about the potential for extreme fluctuations in the market, commenting, ‘There is tremendous fear and instability in the market regarding tariffs. What Trump will do next is unknown, and that is driving uncertainty.’

GIFT Nifty Sinks as FIIs Lead Selling

The impact of these global developments can be felt in the Indian market as well. The GIFT Nifty futures fell by 75 points largely due to the weakness in the U.S. markets, with an additional drop of 100 points linked to extensive selling by Foreign Institutional Investors (FIIs). In a surprising turn of events, the FIIs sold off a staggering Rs 9,800 crore worth of equities during the first trading day of the new series, a move Singhvi described as ‘shocking’ for this new trading cycle.

On the other hand, Domestic Institutional Investors (DIIs) stepped in to support the market by purchasing shares worth Rs 7,646 crore, which helped prevent a more significant downturn. Singhvi believes that the ramifications of adjustments in institutional trading at the end of March will become clearer beginning Thursday.

Advice for Investors in Turbulent Times

Given the current volatility, Singhvi has urged traders to approach the market with caution. He recommends the following strategies:

• Wait for Strong Support Levels - Just because the market opens lower does not necessarily mean it is a good buying opportunity.

• Trade Small Quantities - Due to high volatility, it is crucial to manage risk effectively by booking profits frequently.

• Active Participation Only - Traders who are unsure should consider staying on the sidelines rather than take unnecessary risks.

• Market Direction May Clear by Thursday - The market is likely to find clearer direction as the initial reactions to the tariff announcements begin to settle.

Monitoring Future Market Movements

As global trade tensions rise, all eyes are fixed on Trump’s next actions. Singhvi warns that any unexpected statements or policies could trigger further selling pressure. He emphasizes, ‘The coming days will be crucial. Traders should focus on capital preservation rather than chasing quick gains.’

As investors navigate this uncertain environment, they are likely to keep a close watch on upcoming U.S. policy decisions and global investment trends to figure out the best path forward.

Trump, Markets, Investors