Global Market Jitters: Nifty Tests Key Support Levels as VIX Spikes

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Analysts warn of overexposure to U.S. equities and regional imbalances as Indian markets mirror global volatility.

By S JHA

Mumbai, November 7, 2025 — Global markets is showing renewed signs of unease as the S&P 500 fell 1.1%, marking its 25th daily decline of more than 1% in 2025, according to market chartist Charlie Bilello. “This is normal behaviour for the stock market — the average year has 29 declines greater than 1%,” Bilello wrote on X. “What was abnormal was the vertical advance over the last seven months without any major pullbacks.”

The pullback in US equities reverberated across global markets, including India, where the Nifty 50 index mirrored the volatility. The index plunged nearly 190 points in early trade before staging a sharp recovery, closing the session with a modest 30-point loss. Gains in Bajaj Finance, Adani Enterprises, Mahindra & Mahindra, and Shriram Transport Finance helped offset broader selling pressure.

According to market tracker StockEdge, the Nifty 50 is “currently testing crucial support at 25,450–25,400.” A close below that level, it warned, “could lead to a decline towards 25,000, while a rebound may spur a recovery.” The Bank Nifty, meanwhile, “has breached near-term supports but remains relatively strong,” needing to hold above 57,500–57,350 to sustain its positive bias, with resistance pegged at 57,700–57,900.

Amid the turbulence, IMF First Deputy Managing Director Gita Gopinath issued a broader warning about the world’s growing dependence on US equities. “The exposure of the world to US equities is at record levels,” she said, cautioning that “a stock market correction would have more severe and global consequences as compared to what followed the dot-com crash.”

Gopinath highlighted structural vulnerabilities that could amplify the impact of any US correction: “The tariff wars and lack of fiscal space compound the problem. The underlying problem is not ‘unbalanced trade’ but ‘unbalanced growth.’ There is a need for higher growth and returns in more countries and regions of the world, not just in the US.”

As investors weigh the risks of a global equity pullback, analysts expect heightened volatility in the near term — and a shift in focus toward emerging markets’ resilience, fiscal policy space, and domestic growth momentum.