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New Delhi, India – April 2:
Indian equity markets experienced a sharp decline on Thursday morning. Investors reacted negatively to U.S. President Donald Trump’s address about the escalating Middle East conflict. The BSE Sensex and NSE Nifty 50 both fell over two percent within minutes of the market opening, erasing the gains from the previous day’s rally.
Market Reaction to Trump’s Speech
At 9:16 AM, the BSE Sensex stood at 71,616.03 points, down by 1,518.29 points or 2.08%. Similarly, the NSE Nifty 50 dropped to 22,216.90 points, reflecting a loss of 462.50 points or 2.04%. This decline followed a brief recovery, where the Sensex gained 1,187 points and the Nifty surged by 348 points on the previous day.
Uncertainty Surrounding Middle East Conflict
Market experts pointed to the ongoing uncertainty in the Middle East as a key factor behind the market drop. Investors had hoped for a resolution or at least a ceasefire, but Trump’s speech provided no clear signs of either. This left investors feeling uncertain about the future.
Ajay Bagga, a market and banking expert, stated, “Trump’s address didn’t offer any new developments. There was no ceasefire announcement, and the same messages about threats to Iran were repeated. The market was disappointed after building expectations for a significant announcement. U.S. and Indian futures dropped, and crude oil prices spiked to $105.”
Impact on Global Commodities
Trump’s speech also had an immediate impact on global commodity markets. Crude oil prices rose sharply, with Brent and WTI crude reaching nearly $103 and $105 per barrel, respectively. This surge in energy prices added more pressure on Indian indices.
Vivek Karwa, another market expert, said, “The market had hoped for an end to the conflict. But the war is far from over. Oil prices are climbing, and until there’s clarity about the war’s resolution, the market will remain volatile.”
Key Support and Resistance Levels
The market is now testing critical support levels. According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the key support zones are at 22,500/22,700 and 22,250/22,000.
“If the market holds above these levels, a pullback could push the index towards 22,900-23,000/23,800-24,200,” Chouhan explained. “However, if the market falls below these zones, it could test 22,100-22,000/21,500-21,200.”
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