Global sell-off deepens, Indian shares expected to fall, supported by weakening dollar and lower oil prices.

From Nasdaq.: 2025-04-03 22:35:00

Indian shares are expected to fall on Friday, following global trends, but may be supported by a weakening dollar, lower oil prices, and anticipated interest-rate cuts by the Federal Reserve. The RBI’s MPC is expected to reduce the repo rate by 25 bps next week due to a projected moderation in CPI inflation to 4.2 percent on average in FY26.

Sensex and Nifty dropped around 0.4 percent on Thursday, with IT and auto stocks leading the losses. The rupee closed up 7 paise against the dollar, while foreign institutional investors sold shares worth Rs 2,806 crore and domestic institutional investors bought shares worth Rs 221 crore.

Asian markets are down amid trade war concerns, with China facing a 54 percent tariff and preparing for retaliation, while Canada and the EU plan countermeasures. French President Macron and Germany’s economy minister have called for a strong European response to Trump’s tariffs.

The dollar is weakening, with U.S. Treasury yields around 4 percent as investors await a key U.S. jobs report and a speech by Fed Chair Jerome Powell for economic outlook clues. Oil prices are down after OPEC+ decided to increase output faster. Gold prices are steady, with markets pricing in a 50 percent chance of four rate reductions by the Fed this year.

U.S. stocks plummeted, the dollar had its largest single-day decline, and Treasury yields fell after new tariffs fueled fears of a trade war and recession. U.S. service sector growth slowed in March, adding to investor anxiety. The Nasdaq Composite and S&P 500 hit their lowest levels since August, while the Dow closed at a seven-month low.

European stocks had their biggest daily loss in eight months as Trump announced harsh tariffs. The STOXX 600 fell 2.6 percent, the German DAX dropped 3 percent, the CAC 40 declined 3.3 percent, and the FTSE 100 gave up 1.6 percent.



Read more at Nasdaq.: Sensex, Nifty Seen Lower At Open As Global Sell-off Deepens