The Indian stock market witnessed a sharp decline on Friday as Nifty 50 and Sensex opened in the red, mirroring global sell-offs triggered by the recent tariff announcement by former U.S. President Donald Trump. The impact of the tariffs sent shockwaves through the markets, leading to heavy losses across multiple sectors.
Stock Market Opens in the Red
At the opening bell, the Sensex dropped by 544 points or 0.71%, reaching 75,750, while the Nifty 50 slipped by 194 points or 0.82% to 23,059. This downturn was largely attributed to investor concerns about escalating trade tensions and their potential impact on the global economy.
Midcap and Smallcap Stocks Bear the Brunt
The sell-off wasn’t limited to large-cap stocks, as midcap and smallcap segments also faced significant pressure. The Nifty Midcap 100 index dropped 669 points (1.34%) to 51,464, while the Nifty Smallcap 100 index declined by 253 points (1.56%) to 16,001. These declines reflect the broader market sentiment, where investors turned cautious amid global uncertainty.
Sectoral Indices Show Mixed Performance
Most sectors were in the red, with auto, IT, PSU banks, pharma, FMCG, metal, realty, and energy stocks witnessing heavy selling pressure. On the flip side, the financial services sector managed to buck the trend, registering marginal gains.
Top Gainers and Losers in Sensex
In the Sensex pack, HDFC Bank, Bajaj Finance, Bharti Airtel, and Mahindra & Mahindra (M&M) were among the top gainers. However, some of the biggest losers included Tata Motors, Tata Steel, L&T, IndusInd Bank, Maruti Suzuki, Reliance Industries, Sun Pharma, Infosys, and Tech Mahindra. The volatility reflected the nervousness among investors following the global market turbulence.
Trump Tariff Shockwaves Hit Global Markets
Global markets tumbled after Trump’s announcement of reciprocal tariffs. The Dow Jones Industrial Average in the U.S. plunged by nearly 4%, while the technology-heavy Nasdaq dropped around 6%. The ripple effect was also felt across Asian markets, with Tokyo, Bangkok, and Seoul opening lower. The Gift Nifty indicated a weak start for Indian indices as well.
Foreign and Domestic Institutional Investors’ Activity
On the institutional front, Foreign Institutional Investors (FIIs) continued their selling spree for the fourth consecutive session on April 3, offloading equities worth Rs 2,806 crore. On the other hand, Domestic Institutional Investors (DIIs) remained net buyers for the fifth straight day, purchasing stocks worth Rs 221.47 crore. This contrasting activity reflects a tug-of-war between global uncertainties and local market confidence.
Key Resistance and Support Levels for Nifty 50
According to market analysts, immediate resistance for Nifty 50 is at 23,350, followed by 23,600. If the index manages to break past these levels, an uptrend could resume, with the 200-day simple moving average (DSMA) target between 24,000-24,100. However, until then, traders are advised to focus on stock-specific opportunities for potential gains.
How Should Investors React?
For retail investors, market volatility can be unnerving. However, experts suggest staying invested in fundamentally strong stocks and using dips as buying opportunities. Defensive sectors like FMCG and pharmaceuticals could provide stability, while long-term investors should focus on quality blue-chip stocks.
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Conclusion
The latest slump in Sensex and Nifty 50 underscores the fragile nature of global markets, particularly in response to trade policies and geopolitical events. While the immediate trend remains bearish, investors must adopt a strategic approach, balancing caution with calculated risks. As always, diversification and disciplined investing remain key in navigating such volatile times.
