🔻 Markets Slip Again: Nifty Falls to 22,400 Despite RBI Rate Cut & Global Recession Fears

📰Daily Market Wrap-Up by Stock Whisperers-April 09

Author

thestock whisperers
April 09, 2025

09-April-2025

📈 Market Overview:

Summary of the Day's Market Performance

Market Overview

  • The Sensex fell 379.93 points (-0.51%) to close at 73,847.15 in a mixed session.

  • The Nifty dropped 136.70 points (-0.61%) to 22,399.15, holding near 22,400.

  • Midcap shed 0.8%, and Smallcap lost 1%, reflecting broader caution.

  • Most sectoral indices ended in the red

    Realty, IT, and PSU Bank down 2% each—except Consumer Durables (+0.3%) and FMCG (+1.5%).

💸 Market Transactions:

  • Foreign Institutional Investors (FII): Sold ₹4,358.02 crore

  • Domestic Institutional Investors (DII): Bought ₹2,976.66 crore

DII buying softened FII selling, but failed to reverse the bearish sentiment.

📊📑 Important Observations and Market Sentiments: Editor Special

  • Global markets faced renewed selling pressure as Trump’s reciprocal tariffs (26-27% effective today) escalated trade war fears, with rising US bond yields triggering a sell-off in safe-haven assets.

  • The RBI cut the repo rate by 25 bps to 6.00% and adopted an accommodative stance, a positive for EMIs and rate-sensitive stocks (banks, auto, realty). However, tariff concerns overshadowed gains, with IT lagging ahead of weak Q4 results and pharma cautious on tariff risks.

  • India’s limited tariff impact (services spared) and falling crude prices (near $60/barrel) offer support, but recessionary risks globally cap optimism. Focus shifts to US FOMC minutes and Q4 earnings.

  • RBI lowered FY26 GDP growth to 6.5% (from 6.7%) and inflation to 4% (from 4.2%), signaling readiness for further 2025 rate cuts (2-3 expected).

RBI Monetary Policy Highlights

  • Rate Cut: The repo rate was reduced to 6.00% from 6.25%, which was the second cut this year, aiding EMIs and rate-sensitive sectors.

  • Stance Shift: Changed to ‘accommodative’ from ‘neutral,’ signaling potential 2-3 more cuts in 2025.

  • Forecasts: FY26 GDP cut to 6.5% (from 6.7%), inflation to 4% (from 4.2%), citing tariff risks.

  • Tariff Impact: Governor Malhotra noted a negative net export hit, with falling crude prices cushioning inflation.

  • Gold Loans: New regulations planned, causing intraday volatility in Muthoot (-5%) and peers.

❓ DO YOU KNOW?

The RBI’s accommodative stance marks its first policy shift since February’s 6.25% cut, with Governor Sanjay Malhotra flagging “known unknowns” from tariffs, potentially up to 0.5% GDP drag if trade worsens.

📰Stock News:

Key Stock Movements and News

  • Top Gainers: Nestle, HUL, Tata Consumer, Titan Company, and Power Grid Corp

  • Top Losers: Wipro, SBI, Tech Mahindra, L&T, and Trent

  • IndiGo became the world’s most valuable airline, with a market cap crossing ₹2 lakh crore ($23.3 billion), up 13% YTD.

  • TCS fell 1.6% ahead of Q4 results (due tomorrow), with a 5% revenue rise to ₹64,840 crore expected and a final FY25 dividend likely.

  • Glenmark crashed 6% after the USFDA disclosed a voluntary recall of 39 drugs on March 13.

  • Delhivery dropped 9% over two days post-Ecom Express acquisition (₹1,400 crore), as Emkay flagged cost synergies taking 12-18 months.

  • TCS and Wipro fell up to 4% after Jefferies downgraded IT, citing tariff-hit US growth risks.

  • Vishal Mega Mart slipped after Bernstein flagged a 12% further correction.

  • Gold loan stocks (Muthoot, IIFL Finance) were volatile after the RBI’s plan for “comprehensive” gold loan regulations.

Your Weekly Stock Markets Rundown: 🌐 Orange Bear 🐻 Rattles the Globe: All Eyes on RBI Amid Tariff Turmoil

April 7–11, 2025

The week of April 7-11, 2025, unfolds under the shadow of US reciprocal tariffs, which triggered a global market sell-off and heightened recession fears. India stands relatively better positioned due to lighter tariff impacts and the services sector exemption, while the RBI MPC meeting (April 7-9) could offer a domestic boost with a potential rate cut. Investors will closely monitor the MPC’s response to global trade tensions, alongside key US and UK economic data releases. With benchmark indices reeling and gold likely to remain a safe haven, the market outlook remains cautious, with opportunities in defensive and service-driven stocks.

👀Stocks to Focus:

  1. TCS: Q4 results tomorrow may sway IT sentiment.

  2. HUL: FMCG strength could persist.

  3. Muthoot Finance: Gold loan policy clarity will be key.

📝Summary:

Indian markets fell 0.6%, with Nifty at 22,400, as tariff-driven global selling overshadowed RBI’s 25 bps rate cut to 6.00% and accommodative stance. IT and Realty lagged, but FMCG held firm. FII outflows persisted, though domestic resilience and falling crude offer hope—Q4 results and US data will drive the next move.

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Disclaimer: The Stock Whisperers is a media platform providing educational and informational content related to the stock market. We do not offer investment advice, stock recommendations, or tips. Readers should consult a SEBI-registered advisor before making any investment decisions.