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.

Also Read: Tesla shares fall over 15% over concerns of slowing sales

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%.

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.

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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.

Also Read: Crude oil prices fall over Chinese inflation dip

STOCKS TO WATCH

• IndusInd Bank says its net worth will be hit by 2.5% due to discrepancies in its derivative accounts found during an internal review. The stock fell 4% on Monday and hit a 2.5-year intraday low after the Reserve Bank of India's shorter-than-expected extension to the CEO's tenure
• NTPC and NTPC Green Energy sign multiple agreements worth 960 billion rupees with Chattisgarh state government for nuclear, pump hydro and renewable projects
• Syngene International acquires its first biologics facility in the U.S. from Emergent Manufacturing Operations Baltimore, a unit of Emergent BioSolutions, for $36.5 million