Market Closing Updates: Sensex down by 322 points, Nifty by 82.25 points

On Thursday, April 3, 2025, India's benchmark indexes, Sensex and Nifty, traded lower. The Sensex closed at 76,295.36, falling by 322 points (0.42%), and the Nifty fell by 82.25 points (0.35%) and went below the 23,300 mark to close at 23,250. This downturn followed the imposition of a 26% reciprocal tariff on imports from India by the U.S. President Donald Trump.

Trump's Tariff Announcement

President Trump's tariff announcement on India occurred on Wednesday and is part of his broader plan to implement a 10% baseline tariff on all trade partners starting April 5. Additionally, there will be increased duties on several other countries, including a 54% tariff on China from April 9. The 26% tariff on Indian imports took analysts by surprise.

Global Market Sell-off

Global financial markets experienced a broad sell-off after President Trump's trade policy moves were perceived as more aggressive than anticipated. Stocks tumbled, while Treasuries surged, and the Japanese yen strengthened as investors sought safe-haven assets. Futures for major global indexes also fell, including the S&P 500 (down 2.9%), Nikkei 225 (down 3.4%), and Euro Stoxx 50 (down 1.6%). European stocks also sank to a two-month low.

Sectoral Performance in India

The IT index faced significant losses, falling by 4.21%. Persistent Systems and Coforge were among the top laggards, with their shares dropping by up to 10%. This decline is attributed to concerns over US inflation, which could lead to reduced IT spending, given their high exposure to the Americas.

In contrast, pharma stocks defied the market mood, with the Nifty Pharma index gaining nearly 2.25%. This sector was relieved as it escaped the new US tariffs in the first round. Gland Pharma shares surged up to 1.23%, with other pharma companies like Lupin also gaining. Analysts at BNP Paribas expect a relief rally for the Nifty Pharma Index.

Tata Motors shares fell as auto levies took effect today. The broader auto stocks dropped by up to 1.14% as analysts see the 26% tariff as a significant setback for India's export-driven sectors, especially automobiles. Avanti Feeds and Apex Frozen Foods shares tumbled significantly, by up to 15.25% and 3.98% respectively, due to the tariff's impact on shrimp exports to the US.

Analyst Perspectives

Nilesh Shah of Kotak Mutual Fund warned that Trump’s 26% tariff on India might lead to slower growth and higher inflation. He drew parallels with historical mass tariffs that led to recessions. However, Vijay Kedia, a stock market veteran, viewed the US tariffs as an opportunity rather than a setback, believing India’s domestic-driven economy could absorb trade disruptions. He anticipated bargain buying in selected sectors. Krishna Memani suggested that bonds offer better value than stocks in the current environment of Trump-era volatility. 

Rupee and Bond Market

The Indian Rupee fell by 26 paise during the day to ₹85.78 against the US dollar. Indian government bond prices continued their recent rally, tracking the decline in the U.S. Treasury yields after the tariff announcement.

Impact on Other Assets

Bitcoin and major cryptocurrencies fell as Trump’s tariffs sparked fears of a trade war. Gold surged above $3,160 as investors sought safe-haven assets.

Market Performance

• Sensex: The BSE Sensex fell by 205 points (0.27%) to trade at 76,412.60.
• Nifty: The NSE Nifty dropped by 40.90 points (0.41%) to trade at 23,290.45.

The decline comes in response to US President Donald Trump’s announcement of a steep 26% reciprocal tariff on Indian imports, which has sparked concerns over trade relations and economic growth.

Top Gainers in the Market Today

1. Sun Pharma (+4.46%)

• Opening Price: ₹1,755.00
  
  
• Closing Price: ₹1,790.15
  Sun Pharma led the gainers’ list with a 4.46% increase, driven by a combination of factors including strong financial performance, positive analyst sentiment, company’s focus on specialty drugs and the US tariff’s exemption on Pharma.
  

2. Cipla (+2.92%)

• Opening Price: ₹1,482.00
  
  
• Closing Price: ₹1,494.75
  Cipla, another pharmaceutical giant, saw a 2.92% gain, due to combination of factors including positive news regarding its Goa facility’s USFDA clearance, strong performance in key markets and Kotak’s upgrade to “buy”.
  

3. Shriram Finance (+2.31%)

• Opening Price: ₹633.00
  
  
• Closing Price: ₹654.20
  Shriram Finance gained 2.31%, reflecting investor optimism about the financial sector’s growth and stability, strategic fundraising initiatives and company’s growth in the vehicle financing segment.
  

4. Adani Enterprises (+2.07%)

• Opening Price: ₹2,338.40
  
  
• Closing Price: ₹2,414.80
  Adani Enterprises saw a 2.07% increase, possibly driven by positive news surrounding infrastructure expansion and strong revenue forecasts.
  

5. UltraTech Cement (+1.91%)

• Opening Price: ₹11,189.00
  
  
• Closing Price: ₹11,466.25
  UltraTech Cement registered a 1.91% rise, due to analyst upgrade, positive investor sentiment and company’s focus on sustainable cost savings and capacity additions.
  

The pharmaceutical and infrastructure sectors dominated today’s top gainers, reflecting strong investor confidence. Financial stocks also performed well, signaling optimism in economic recovery. Keep an eye on these stocks for potential future gains!

Top Losers in the Market Today

1. HCL Technologies (-3.41%)

• Opening Price: ₹1,500.00
  
  
• Closing Price: ₹1,475.50
  HCL Tech led the losers’ list, dropping 3.41% due to a narrowed revenue guidance for FY25, indicating a potentially weak performance in the final quarter.
  

2. Tech Mahindra (-3.29%)

• Opening Price: ₹1,397.00
  
  
• Closing Price: ₹1,376.25
  Tech Mahindra saw a 3.29% decline, possibly impacted by tariff concerns, Broader Market weakness in IT and weaker demand concerns.
  

3. TCS (-3.16%)

• Opening Price: ₹3,425.00
  
  
• Closing Price: ₹3,318.65
  TCS dropped 3.16%, reflecting pressure on the IT industry due to global recession fears and potential reduction in outsourcing demand due to the tariff imposed by US Govt.
  

4. Infosys (-3.16%)

• Opening Price: ₹1,534.65
  
  
• Closing Price: ₹1,501.10
  Infosys lost 3.16%, mirroring the broader tech sector downturn amid weak global market sentiments and the tariff impositions by the US. Govt
  

5. Bajaj Auto (-2.39%)

• Opening Price: ₹7,940.55
  
  
• Closing Price: ₹7,880.25**
  Bajaj Auto declined 2.39%, likely due to concerns over demand fluctuations in the automobile sector and rising input costs.
  

The IT sector faced the biggest losses today, with major players like HCL Tech, Tech Mahindra, TCS, and Infosys seeing sharp declines. This could be attributed to global macroeconomic challenges and  a potentially slowing demand for outsourcing services. Meanwhile, Bajaj Auto’s dip reflects broader concerns in the automobile sector. Investors should watch for sector-specific recovery trends before making decisions.

Market Open

India markets opened weak on Thursday with the Nifty 50 down 180.6 points (-0.77%) to 23,150.30 below 23,200 which is a crucial support level and the Sensex down nearly 805.58 points (-1.05%) at 75,811.86. The selloff is part of a larger global decline set off by Donald Trump’s announcement of new tariffs, which also pressured Asian markets.

Factors Influencing Market Sentiment

• Trump’s ‘Liberation Day’ Tariffs: On Apr 2, US President Donald Trump celebrated what he dubbed “Liberation Day” by announcing an extensive new tariff policy that could change the landscape of global trade. At its heart is a universal import tax — a uniform 10% tariff on all imports arriving in the US — which is to go into effect on April 5.
• Higher Tariffs on Key Trading Partners: Along with the universal tariff, Trump announced a slew of reciprocal tariffs targeting 60 countries to combat what he calls unfair trade practices. Those new tariffs/per nation differ, with the highest being China at 34% and followed by Vietnam in 46%, India 26%, Japan 24%, and the European Union at 20% Exports from the United Kingdom will be subject to a 10% tax to the United States. The officials said such steps would cover a wide swathe of sectors, including automobiles, pharmaceuticals, electronics, IT and jewellery, and could upend global supply chains.
• Wall Street Futures Tumble Following Trump’s Tariff Announcement: Despite plans extending until mid-2020, the announcement triggered an immediate rout, with Dow Jones futures falling by more than 900 points, while S&P 500 and Nasdaq futures dropped by 3.9% and 4.7%, respectively, reflecting market anxiety over a new tariff regime amid a fragile wage recovery.

Global Backdrop:

• US Dollar: The US Dollar Index (DXY)—which measures the greenback against a basket of six major currencies, which include the British Pound, Euro, Swedish Krona, Japanese Yen, and the Swiss Franc—was at 103.10 Thursday morning. The Indian rupee, on the other hand, shut down April 2 on 85.50 per US dollar.

• Gold Rate Today: According to Goodreturns, the rates of 24-carat gold per 10 grams today are Rs 92,830 in India, Rs 85,090 for 22-carat gold and Rs 69,620 for 18-carat gold.
• Crude Oil: Crude Oil Price as on April 3 fell. WTI crude fell 2.68% to $69.79 per barrel while Brent crude lost 2.53% to $73.05 per barrel.

Stocks in Focus:

• HDFC Bank: SEBI issues admin caution letter regarding regulatory non-compliance in custodian activities; may impact investor sentiment.
• Punjab National Bank (PNB): Q4 profit beats estimates. Global business growing through higher advances, deposits.
• Bharat Electronics Ltd (BEL): Received a ₹593.22 crore order from the Indian Air Force for the upkeep of the Akash Missile System.
• Kirloskar Oil Engines: Awarded an order worth ₹270 crore by the Indian Navy.
• Lupin: UK-based Renascience Pharma — ₹135 crore (₹12.3 million) lupus Josh Wyman's portfolio of branded injectable cephalosporins.
• Reliance Industries (RIL): ₹8,000 crore integrated CBG plant in Andhra Pradesh near Divakarapalli in Kanigiri proposed, which is part of its ₹65,000 crore investment in the CBG hubs in the State.
• Hindustan Zinc: FY25 output targets set at 1,095 kt mined metal, 1,052 kt refined metal (₹05 kt zinc (+1% YoY), 225 kt lead (+4% YoY)
• Muthoot Finance: Rating upgraded by Moody’s to 'Ba1' from 'Ba2' with a stable outlook.
• NTPC: Global Tenders issued, seeking partners to develop 15 GW of reactors, step towards India’s target of 100 GW nuclear by 2047.
• Macrotech Developers (Lodha): Use by entities styled around House of Abhinandan Lodha of purported board resolutions to claim the “Lodha” trademark.
• Infosys: Partnered with the ABB FIA Formula E World Championship to introduce the Formula E Stats Center for deeper engagement with fans.
• SJVN: Started commercial power delivery of Phase-1 of its 1,000-MW Bikaner Solar power project, built by SJVN Green Energy Ltd.

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