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Nifty ends lower amid concerns over US-China tariff war

09 Apr 2025 Evaluate

Indian equity benchmark -- Nifty -- snapped previous session’s gains and closed in red terrain amid escalation in US-China tariff war. Nifty made gap-down opening following broadly negative cues from Asian counter markets. Sentiments were weak as market participants took note of exchange data shown foreign institutional investors (FIIs) offloaded equities worth Rs 4,994.24 crore on a net basis on Tuesday. Traders overlooked the Reserve Bank of India's (RBI’s) policy outcome where it slashed key interest rate by 25 basis points, for the second time in a row, to support a shuttering economy hit by reciprocal tariffs imposed by the US. However, losses remained capped as RBI's MPC lowered its inflation forecast for the financial year ending in March 2026 (FY26) to 4 per cent, down from 4.2 per cent earlier, citing a sharper-than-expected decline in food prices and easing global crude oil rates. Index continued its range-bound trade in red terrain throughout the day and closed below 22,400 mark. 

Most of the sectorial indices ended in red except Consumer Durables, FMCG and Auto stocks. The top gainers from the F&O segment were NBCC (India), Max Healthcare Institute and Godrej Consumer Products. On the other hand, the top losers were Muthoot Finance, Biocon and Mahanagar Gas. In the index option segment, maximum OI continues to be seen in the 23400 - 23600 calls and 20900 - 21100 puts indicating this is the trading range expectation.

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