The major equities indices in the country ended the day lower than the international markets. The uncertainty around US President Donald Trump’s retaliatory tariffs, which are set to take effect on Wednesday, April 02, caused the markets to plummet. According to Sunil Jain, vice president of Elara Capital, investors’ panicked sell-off ahead of Trump’s “Liberation Day” was more significant than a stock market meltdown.
The BSE Sensex fell 1,390 points, or 1.80%, to end at 76,024.51, while the NSE Nifty 50 dropped 354 points, or 1.50%, to settle at 23,165,70.
The Nifty Bank closed at 50,827.50, down 737 points, or 1.43%. Following the benchmarks, the BSE Midcap closed at 41,099.88, down 1.04%.
Sectoral Index
Small- and mid-cap equities ended the day lower in the overall markets. India VIX, a measure of volatility, surged 8.37% to 13.78.
Nonetheless, the overall market breadth continued to favor bulls, with 1,955 of the 2,994 stocks that were traded rising and 960 falling.The Nifty 50’s biggest loser was HCL Technologies (3.6%), followed by BEL (3.47%), Bajaj Finserv (3.26%), HDFC Bank (3.19%), and Hindalco (2.78%). In the meantime, the leading winners in the sluggish market were Hero MotoCorp, Bajaj Auto, Jio Financial Services, Trent, and IndusInd Bank.
Following the recent recovery, market participants are profit-booking as a result of their attentive attention to the ongoing tariff negotiations and their sectoral implications. The Nifty index, which had been stabilizing, has also broken through the moving average ribbon support at 23,400 and fallen below its range. According to Ajit Mishra, Senior Vice President of Research at Religare Broking, “the next key support is around 23,100 (20 DEMA); a breakdown below this level could further dampen sentiment, while holding above it could pave the way for a recovery.”
