Sensex down 300 pts, Nifty below 22,500: Tariff worries, RBI GDP downgrade among key factors behind market decline

US-China tariff spat, global cues among key factors pulling markets down on April 9.

Benchmark equity indices opened sharply lower on Wednesday, with the BSE Sensex tumbling more than 550 points and the NSE Nifty slipping below the 22,400 mark, tracking weakness in global markets and rising concerns over escalating trade tensions as the Trump's latest tariffs kick-in today.

Sensex dropped 379.93 points or 0.51 percent to settle at 73,847.15. During the day, it slumped 554.02 points or 0.74 percent to a low of 73,673.06. The NSE Nifty declined 136.70 points or 0.61 percent to 22,399.15. Intra-day, it tanked 182.6 points or 0.81 percent to 22,353.25. Losses were broad-based across sectors, with heavyweights in IT and metals witnessing selling pressure.

The sharp correction came after a day’s pause, as investors turned risk-averse amid a worsening tariff battle between the world’s two largest economies. US President Donald Trump doubled tariffs on Chinese imports, prompting an aggressive response from Beijing, which vowed to "fight to the end".

"The move to impose a steep 104 percent tariff on Chinese goods is unprecedented, and Beijing’s retaliatory stance is only adding to the global market uncertainty," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "There is blood on the streets. Uncertainty reigns supreme."

Key factors behind today’s market decline:

1. Escalating US-China Trade War: The intensifying tariff war has rattled global equity markets. After the US announced reciprocal tariffs on Chinese imports, Beijing imposed retaliatory tariffs of 34 percent on US goods. Investors fear prolonged friction could weigh on global trade flows and impact economic recovery.

2. Rising US Bond Yields: Yields on US Treasuries climbed sharply, reducing the appeal of riskier assets like equities. The yield on the 10-year US Treasury rose by 20 basis points to 4.5 percent, while the 30-year yield jumped 21 basis points to 4.97 percent. Rising yields often signal tighter financial conditions.

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3. RBI’s Lower GDP Forecast: Adding to concerns, the Reserve Bank of India in its first bi-monthly monetary policy of FY26 projected a potential cut in GDP growth due to recent tariff impositions by the US. RBI Governor Sanjay Malhotra said the fresh 26 percent tariff on Indian goods by the US could trim GDP growth for FY26 by 20–40 basis points, bringing it down to around 6.1 percent from the earlier estimate of 6.7 percent.

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What do technical analysts suggest?

Anand James, Chief Market Strategist at Geojit Financial Services, said Nifty faced resistance near 22,660, which it tested before retreating. “Unless the index moves past 22,660, we expect some pullback and consolidation near the 22,300 level. A break below 22,160 could trigger fresh volatility, though the probability of that remains low,” he said.

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