Indian equities are set to open lower on Tuesday, tracking a broad sell-off across Asian markets after Wall Street tumbled overnight on fears that the U.S. economy could be careening into recession.
The decline followed U.S. President Donald Trump’s refusal on Sunday to predict whether the U.S. could face a recession amid worries over his tariff policies, heightening investor concerns about global economic stability.
The GIFT Nifty futures were trading at 22,430.5 as of 07:53 a.m. IST, indicating that the blue-chip Nifty 50 will likely open below Monday’s close of 22,460.3.
Asian markets slid on the day, with Japan’s Nikkei 225 sliding 2.7% and MSCI Asia ex-Japan falling 1.6%.
Indian stocks set for muted start after last week’s gains
U.S. stocks fell sharply overnight as relentless tariff wrangling and mounting anxieties from a possible federal government shutdown stoked recession fears.
The Nasdaq Composite index fell 4%, while Tesla plunged 15.4% in the wake of its CEO Elon Musk’s Department of Government Efficiency firings and protests arising from his support of far-right political parties in Europe.
Uncertainty over U.S. tariffs has caused inflationary worries in the world’s largest economy and concerns over its impact on global growth, dragging most equity markets lower year-to-date.
Nifty 50 is trading about 14.5% below the all-time high hit in September 2024, hurt by slowing earnings growth, U.S. tariff uncertainty and relentless foreign selling.
Foreign portfolio investors (FPI) sold Indian shares worth 4.85 billion rupees ($55.5 million) on Monday, taking the total outflows to about $28 billion since September-end when markets traded at their peaks.
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