🌪️ Tariff Shock Rocks D-Street: Nifty Cracks Below 23,000, Broader Markets Bleed 🩸

📰Daily Market Wrap-Up by Stock Whisperers-April 04

Author

thestock whisperers
April 04, 2025

04-April-2025

📈 Market Overview:

Summary of the Day's Market Performance

Market Overview

  • The Sensex plunged 930.67 points (-1.22%) to close at 75,364.69, marking a weak finish.

  • The Nifty dropped 345.65 points (-1.49%) to 22,904.45, slipping below 23,000.

  • Midcap index fell 3%, and Smallcap index shed 3.4%, underperforming benchmarks.

  • All sectors except FMCG ended in the red—Metal (-6.5%), Pharma (-4%), Realty (-3.6%), Oil & Gas (-4%), Auto, Consumer Durables, Power, PSU, Media, and IT down 2-3%.

💸 Market Transactions:

  • Foreign Institutional Investors (FII): Sold ₹3,483.98 crore

  • Domestic Institutional Investors (DII): Sold ₹1,720.32 crore

Both FII and DII selling intensified the downturn, reflecting global risk-off sentiment.

📊📑 Important Observations and Market Sentiments: Editor Special

  • Higher-than-expected US tariffs (26% on imports, 27% reciprocal on India) sparked a global bearish wave, with fears of retaliatory measures fueling uncertainty.

  • US bond yields and oil prices fell, signaling economic slowdown and recession risks, while IT (-9% weekly) saw its worst drop since COVID-2020 on US client spending fears.

  • India’s tariff impact is moderate but larger than anticipated—metals, autos, and pharma hit hard; Q4 earnings recovery offers hope, but consolidation looms.

  • RBI’s policy meet today (steady rates expected) and US jobs data (unemployment uptick to 4.1% projected) added to cautious sentiment.

❓ DO YOU KNOW?

The IT index’s 9% weekly fall—the largest since March 2020—wiped out ₹3.5 lakh crore in market cap, driven by tariff-led US slowdown fears.

📰Stock News:

Key Stock Movements and News

  • Top Gainers: Bajaj Finance, Tata Consumer, HDFC Bank, Apollo Hospitals, and Nestle India

  • Top Losers: Tata Steel, Hindalco Industries, ONGC, Tata Motors, and Cipla

  • Union Bank fell 5% after missing loan growth guidance (8.6% vs. 11-13%), with a ₹9.82 crore loan book.

  • Godrej Properties gained on acquiring a Versova, Mumbai land parcel for a ₹1,350 crore residential project.

  • HDFC Bank rose 3% on a strong Q4 update—retail loans up 9%, commercial/rural loans up 12.8%.

  • Tata Motors, Bharat Forge, and other auto stocks crashed up to 8% as tariffs hit $6.8 billion in US exports.

  • Bajaj Finance rose on a 26% AUM rise to ₹4.17 lakh crore and a 36% jump in fresh loans in Q4.

  • Tata Motors dived 6% after CLSA downgraded it to ‘Outperform,’ cutting the target to ₹765 on JLR tariff woes.

  • Infosys and TCS weighed on the Sensex as IT extended its selloff on US spending fears.

  • Angel One, MCX, and other capital market stocks fell up to 5% on recession fears.

  • Mazagon Dock tanked 6% as the government plans to offload a 4.8% stake via OFS.

  • HUDCO gained on approving a ₹65,000 crore fundraise for FY26, hiking its borrowing limit to ₹2.5 lakh crore.

  • Sun Pharma fell 4%, leading the pharma rout, as Trump vowed massive tariffs on the sector.

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. HDFC Bank: Strong Q4 update could sustain gains.

  2. Tata Motors: Tariff pressures may persist.

  3. Sun Pharma: Pharma tariff threats warrant caution.

📝Summary:

Indian markets slumped 1.5%, with Nifty below 23,000, as US tariffs (26-27%) triggered a broad sell-off—IT and metals hit hardest. FII and DII selling intensified the rout, though domestic earnings recovery offers hope. With a 3% weekly drop, consolidation looms—US jobs data and Q4 results will be key.

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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.