Equity Markets fell on Friday with the benchmark -Indices who lower more than 1 percent as a fear of a global trade war and recession concerns the sentiment of investors after major tariff announcements by US President Donald Trump. The Sesex crashed 930.67 points or 1.22 percent to close to 75,364.69, while the Nifty 345.65 points or 1.49 percent fell to end at 22,904.45.
The market capitalization of all listed companies on the BSE has shrunk with more than £ 1 trillion, slip to £ 40,409,600.62 crore of £ 41,416,218.49 crore in the previous session, which reflects the wide sale that grip the markets.
“The recent implementation of higher than mitigating American rates has had a significant impact on the world markets, which activates a bearish trend while investors assess the broader implications.
Metal stocks carried the victim of sales pressure, in which Tata stood up, the largest loser among handy components, with 8.43 percent decreased to close to £ 140.67. Hindalco followed closely with a decrease from 8.07 percent to £ 600, while about 7.07 percent fell to £ 226.10. Tata Motors and Cipla complete the best losers, with drops of 5.94 percent and 5.29 percent respectively.
The market width was heavily crooked in favor of decliners, with 2,820 shares that fell against 1,126 advances on the BSE. Only 130 shares remained unchanged, while 89 shares hit their lows of 52 weeks compared to 66 highs of 52 weeks.
“Benchmark-Indices expanded their losing series to a second session on 4 April, each with a percentage, because risk-off sentiment took over the global markets for fear of a trade war on the back of the mutual rates of US President Donald Trump,” noted Bajaj Broking-research on in their market comment.
The wider market has experienced even steeper decreases, with the Nifty Midcap 100 fell by 2.91 percent to 50,645.95 and the Nifty Smallcap 100 with 3.56 percent. The sectoral performance remained wide negative, with only the FMCG index to stay in a positive area.
“Initially, the index found support at the crucial 22,900 level. Sentiment remains weak and a further decrease compared to the current level could cause extra market correction,” Rupak warned the, senior technical analyst at LKP Securities.
Bajaj Finance led the profit and rose 1.69 percent to £ 8,739.90, followed by TATA consumer products (1.59 percent), HDFC Bank (1.22 percent), Apollo hospitals (0.95 percent) and Nestle India (0.57 percent).
In the derivatives segment, long structure was observed in shares such as PNB housing, Max Healthcare, Axis Bank, Icici Bank and Torrent Pharma, while a substantial short structure was seen in Hindustan Zink, Persistent systems, Coforge, CG Power and Tata motors.
In the field of raw materials, Gold witnessed profit booking with prices with £ 650 for £ 89,450 on MCX. “Gold witnessed profit booking with prices with £ 650 for £ 89,450 in MCX, after the official announcement of tariff prices,” said Jateen Trivedi, VP research analyst at LKP Securities.
Oil markets witnessed a dramatic dive, with WTI roughly tumbling at 6.4 percent on Thursday. “WTI crude oil fell by 6.4 percent on Thursday, which marked the steepest decrease since 2022 and fell below $ 66 per barrel, after the announcement of OPEC+that it is planning to increase oil production more than expected in May,” said Kaynat Chainwala, AVP-EDUCITY Research, Kotak Securities.
The Indian rupid got strength against the dollar and closed at 85.23, against 20 Paise. “Repoie traded positively with a win of 0.16Rs on 85.20, supported by weakness in raw prices, causing the rupid to help the power,” said Jateen Trivedi.
Foreign Institutional Investors (FIIs) continued their sales party and loaded £ 10,246.51 crore to Indian shares in the first three days of April. “FPI streams are expected to remain fleeting,” warned Shrikant Chouhan, head of stock examination, Kotak Securities.
FIIS/FPIS reported a net flow of £ 2,806 crore, while Diis registered a net inflow of £ 221.47 crore. Customers saw a net flow of £ 203.16 crore, NRIS registered a net inflow of £ 4.34 Crore and their own traders contributed a net inflow of £ 199.06 crore.
Looking ahead, market participants will closely monitor the developments of the American tariff policy, the upcoming RBI -monetary policy decision and the start of the Q4FY25 profit season. “As Q4 approaches, a successive improvement of the business performance is expected. However, the prevailing weak market sentiment suggests that the phase of consolidation can continue to exist in the short term,” Vinod Nair added.
Technical analysts suggest that the Nifty could get further pressure if it breaks below the level of 22,800. “The following support for Nifty can be seen near 22700, where 61.8 percent retracement of the entire rally is placed from 21964 to 23869,” said Nandish Shah, vice-president, HDFC Securities.
As the worldwide markets struggle with the implications of increased trade tensions, Indian stock indices may experience continuous volatility in the coming sessions, whereby investors remain careful in the midst of possible retaliation measures of large trading partners and their impact on global economic growth.
Published on April 4, 2025
