📉 Markets Slip as IT & Auto Drag Post US Tariff Move; Pharma Shines Amid Exemptions 💼

📰Daily Market Wrap-Up by Stock Whisperers-April 03

Author

thestock whisperers
April 03, 2025

03-April-2025

📈 Market Overview:

Summary of the Day's Market Performance

Market Overview

  • The Sensex fell 322.08 points (-0.42%) to close at 76,295.36 in a choppy session.

  • The Nifty dropped 82.25 points (-0.35%) to 23,250.10, retreating from early gains.

  • Midcap rose 0.3%, and Smallcap gained 0.7%, outperforming benchmarks.

  • IT (-4%) and auto (-1%) led sectoral declines, while pharma (+2%), PSU Bank (+1.9%), and power (+1.8%) gained.

💸 Market Transactions:

  • Foreign Institutional Investors (FII): Sold ₹2,806.00 crore

  • Domestic Institutional Investors (DII): Bought ₹221.47 crore

FII selling dominated, pressuring the market despite modest DII support.

📊📑 Important Observations and Market Sentiments: Editor Special

  • Markets ended lower after Trump’s 26% tariff on US imports (plus 27% reciprocal tariffs on India) sparked selling in IT and auto, hit by US slowdown fears and supply chain woes.

  • Pharma stocks rose, exempt from tariffs, while robust domestic macros (manufacturing PMI at 57.6) and lower crude oil prices supported broader markets.

  • India’s economic resilience and the US-India trade agreement may cushion long-term impacts, but short-term tariff challenges persist.

  • The focus shifts to tomorrow’s US jobs data and RBI policy meeting, with rate cut hopes alive (CPI at 3.75% in Feb).

❓ DO YOU KNOW?

The US dollar index stayed rangebound at 104.01 last week, down 0.13%, while the 10-year Treasury yield edged up to 4.251%—both signaling cautious global sentiment.

📰Stock News:

Key Stock Movements and News

  • Top Gainers: Power Grid Corp, Sun Pharma, UltraTech Cement, Cipla, and Shriram Finance

  • Top Losers: TCS, HCL Technologies, Tech Mahindra, Infosys, and ONGC

  • Tejas Networks jumped 9% on BSNL’s ₹61,000 crore 5G expansion plan, as a key 4G/5G equipment supplier.

  • Vedanta, JSW Steel, and other metal stocks slipped on fears of steel dumping in India post-US tariffs.

  • IDBI First Bank rose up to 6% as Q4 loans grew 20% YoY to ₹2.42 lakh crore, deposits up 25% to ₹2.43 lakh crore.

  • Navin Fluorine, SRF, and other chemical stocks fell up to 6% after the US imposed a 27% reciprocal tariff on India.

  • Avanti Feeds and Apex Frozen Foods crashed up to 15% on the 27% tariff, given their high US export exposure.

  • Tata Motors and ancillary stocks dropped up to 2% as Trump’s auto import tariffs (26%) hit JLR’s key US market.

  • Kirloskar Oil Engines gained on a Defence Ministry order to develop 3-10 MW engines for Indian Navy ships.

Your Weekly Stock Markets Rundown: Markets End FY24-25 on a High, But Caution Looms Ahead of US Tariff Announcements

March 31 - April 4, 2025

The Indian market closed FY24-25 positively, with the Nifty 50 and BSE Sensex posting gains, driven by FII buying and rate cut hopes. However, caution prevails ahead of the US tariff announcements on April 2, which could escalate global trade tensions. The truncated week starting April 1 will likely see consolidation with a positive bias, though early corrections may occur due to tariff uncertainties. Key data points like US job numbers, PMI releases, and India’s auto sales will shape sentiment, while investors also look to the upcoming RBI policy meeting and Q4 earnings. Gold remains a safe-haven bet amid global uncertainties, and banking stocks may continue to attract attention.

👀Stocks to Focus:

  1. Tejas Networks: 5G expansion plans could sustain gains.

  2. Sun Pharma: Tariff exemption may drive pharma strength.

  3. Tata Motors: Auto tariff impact warrants caution.

📝Summary:

Indian markets fell 0.4% as Trump’s 26-27% tariffs hit IT and auto stocks, though pharma and PSU banks gained. Broader markets held up, supported by strong domestic macros and lower oil prices. FII selling weighed, but India’s resilience offers hope—US jobs data and RBI’s policy meet will steer 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.