Indian equity benchmarks saw a sharp sell-off on Friday, tracking weak global markets amid growing global trade war fears. Besides, a sharp correction in crude prices and a heavy sell-off in market heavyweights Tata Steel, Tata Motors and Larsen & Toubro added to the gloom. Besides, foreign fund outflows have also dented the investor sentiment.
Some of the important factors in today’s trade:
FIIs selling continues: Exchange data showed foreign institutional investors (FIIs) extended their selling streak for the fourth consecutive session on April 3, offloading equities worth Rs 2,806 crore.
India's services sector activity eases slightly in March: India's services sector activity eased slightly in March, weighed down by a marginal slowdown in sales amid softer demand conditions and easing inflationary pressures. The seasonally adjusted HSBC India Services PMI Business Activity Index fell from February's reading of 59.0 to 58.5 in March, but remained above its long-run average of 54.2.
US to impose 30% Tariff on Indian Agri, Plastics, Textiles: The Global Trade Research Initiative (GTRI) said sectors including agriculture, meat, processed food, plastics, textiles and clothing will face over 30 per cent import duties in the US market from April 9, 2025.
US Tariffs hit Indian Gems & Jewelry exports: Apex industry body GJEPC said the US retaliatory tariffs are a major setback for the Indian gems and jewellery exports. It urged the government to take steps to secure the long-term interest of the sector.
Weak global cues: European markets were trading lower after U.S. President Donald Trump announced significantly harsher-than-expected tariffs. Asian markets settled down in thin trade as U.S. President Donald Trump's broad tariff announcements stoked fears about the outlook for inflation and global growth.
Finally, the BSE Sensex fell 930.67 points or 1.22% to 75,364.69, and the CNX Nifty was down by 345.65 points or 1.49% to 22,904.45.
The BSE Sensex touched high and low of 76,258.12 and 75,240.55 respectively. There were 6 stocks advancing against 24 stocks declining on the index.
The broader indices ended in red; the BSE Mid cap index fell 3.08%, while Small cap index was down by 3.43%.
The top losing sectoral indices on the BSE were Metal down by 6.34%, Capital Goods down by 3.99%, Oil & Gas down by 3.89%, Industrials down by 3.89% and Basic Materials down by 3.89%, while there were no gaining sectoral indices on the BSE.
The top gainers on the Sensex were Bajaj Finance up by 1.43%, HDFC Bank up by 1.30%, Nestle up by 0.79%, ICICI Bank up by 0.38% and Asian Paints up by 0.27%. On the flip side, Tata Steel down by 8.59%, Tata Motors down by 6.15%, Larsen & Toubro down by 4.67%, Adani Ports &Special down by 4.38% and Indusind Bank down by 3.83% were the top losers.
Meanwhile, SC Ralhan, the President of the Federation of Indian Export Organisations (FIEO), has said that US tariffs provide Indian exporters with a competitive advantage over rival nations. He said that the movement is ‘quite favourable’. He expressed optimism about the impact of the tariffs on Indian exports, noting that while India faces a tariff of around 27 per cent, this remains manageable compared to the higher tariffs imposed on competing nations, particularly China.
He stated ‘The import tariffs imposed on peer Asian economies are more compared to the tariff rate of 27 per cent on India could be an advantage to us.’ He said ‘We have an advantage in that whatever the advantage China had with cheap raw materials, that advantage is gone. I think this is good.’ Moreover, he said that Indian manufacturers have an opportunity to increase the trade share.
Further, he stated that industries in countries like Turkey would be more adversely affected, given the disparity in tariff rates. He added ‘Despite initial concerns, India’s position remains strong, and this presents a crucial opportunity for Indian exporters to enhance production quality and maintain consistency in supply. Orders from the US are expected to start flowing to India soon.’
Besides, on the domestic front, he emphasised the need for government intervention to support Indian exporters. He urged policymakers to facilitate the modernisation of small- and large-scale industries by reducing tariffs on energy-efficient and high-productivity machinery imports.
The CNX Nifty traded in a range of 23,214.70 and 22,857.45. There were 8 stocks advancing against 42 stocks declining on the index.
The top gainers on Nifty were Bajaj Finance up by 1.69%, Tata Consumer Product up by 1.59%, HDFC Bank up by 1.22%, Apollo Hospital up by 0.95% and Nestle up by 0.57%. On the flip side, Tata Steel down by 8.43%, Hindalco down by 8.07%, ONGC down by 7.07%, Tata Motors down by 5.94% and Cipla down by 5.29% were the top losers.
European markets were trading lower; UK’s FTSE 100 decreased 325.23 points or 3.84% to 8,149.51, France’s CAC fell 325.29 points or 4.28% to 7,273.69 and Germany’s DAX lost 1080.57 points or 4.98% to 20,636.82.
Asian markets settled down in thin trade on Friday, with markets in mainland China, Hong Kong, Indonesia and Taiwan closing for market holidays. Market sentiments weakened further by tracking Wall Streets’ heavy losses overnight after the announcement of sweeping new tariffs stoked fears of a trade war and the US entering a recession. Japanese shares declined as exporters were hit by a stronger yen. Seoul shares fell as South Korean President Yoon Suk Yeol was ousted by the Constitutional Court, ushering in an election after it upheld parliament's impeachment over his imposition of martial law that sparked the nation's worst political crisis in decades. Investors were awaiting the monthly US jobs report as well as remarks by Federal Reserve Chair Jerome Powell due later in the day for further direction.
| Asian Indices | Last Trade | Change in Points | Change in % |
| Shanghai Composite | -- | -- | -- |
| Hang Seng | -- | -- | -- |
| Jakarta Composite | -- | -- | -- |
| KLSE Composite | 1,504.14 | -14.77 | -0.97 |
| Nikkei 225 | 33,780.58 | -955.35 | -2.83 |
| Straits Times | 3,825.86 | -116.37 | -3.04 |
| KOSPI Composite | 2,465.42 | -21.28 | -0.86 |
| Taiwan Weighted | -- | -- | -- |
