GIFT Nifty Signals Weak Opening Amid Global Market Sell-off

The GIFT Nifty index dropped 910 points, or 3.96%, early Monday, hinting at a weak start for Indian equity markets. The sharp decline points to the Nifty 50 possibly opening near the March 4 low of 21,964.

The drop followed heavy selling pressure in global markets, triggered by concerns over US trade policy and recession risks. US stock futures extended last week’s losses. S&P 500 futures fell 3.1%, while Nasdaq futures lost 4% today.

European markets also reflected the broader negative sentiment. EUROSTOXX 50 futures declined 3%, FTSE futures fell 2.7%, and Germany’s DAX futures dropped 3.5%.

Asian equities saw deep losses. Japan’s Nikkei dropped 6%, reaching levels last seen in late 2023. South Korea’s Kospi declined 5%. MSCI’s index of Asia-Pacific shares outside Japan fell 3.6%. Chinese blue-chip stocks lost 4.4% as markets awaited a potential policy response from Beijing. Taiwan’s benchmark index slid nearly 10%, prompting local authorities to impose restrictions on short selling.

Market volatility followed comments by President Donald Trump, who ruled out a trade deal with China until the US trade deficit is addressed.

Oil prices remained under pressure due to concerns over global growth. Brent crude fell to $64.23 per barrel.