Synopsis
On April 3, the Indian stock market closed lower due to investor caution following US President Trump's tariff announcement. The Sensex and Nifty both experienced declines, with tech stocks suffering the most while pharma stocks showed resilience. Analysts suggest that global developments will continue to influence market trends.Key Takeaways
- Sensex falls by 322.08 points
- Nifty decreases by 82.25 points
- Trump's tariffs affect market sentiment
- Pharma stocks show strength amidst overall decline
- Investors remain cautious of global developments
Mumbai, April 3 (NationPress) The Indian stock market concluded lower on Thursday as investors exercised caution following the announcement of new tariffs by US President Donald Trump.
The newly introduced tariff structure imposes a 10 percent tax on all imports to the US, along with elevated tariffs for countries enjoying a trade surplus; consequently, India will be subjected to a 27 percent tariff.
The Sensex dropped 322.08 points, equivalent to 0.42 percent, finishing at 76,295.36. Throughout the day, the index experienced fluctuations, reaching an intraday high of 76,493.74 and a low of 75,807.55.
Similarly, the Nifty also closed lower, decreasing by 82.25 points, or 0.35 percent, settling at 23,250.10.
“The main driver behind today’s downturn was deteriorating global sentiment, worsened by President Trump’s announcement of a 26 percent reciprocal tariff on Indian imports, leading to a cautious approach among investors,” remarked Sundar Kewat of Ashika Institutional Equity.
Technology stocks led the decline, with TCS, HCL Tech, Tech Mahindra, Infosys, and Tata Motors experiencing drops of up to 4.02 percent.
Conversely, Power Grid Corporation, Sun Pharma, Ultratech Cement, NTPC, and Asian Paints emerged as top gainers, climbing by as much as 4.57 percent.
The IT sector proved to be the weakest performer, with the Nifty IT index falling 4.21 percent, hindered by Persistent Systems, Coforge, TCS, and Mphasis. Additionally, auto, oil & gas, and real estate stocks struggled.
On a brighter note, pharmaceutical stocks thrived, as the Nifty Pharma index ascended 2.25 percent. Banking, healthcare, FMCG, and consumer durables sectors also recorded gains, rising up to 1.94 percent.
Despite the overall market downturn, smallcap stocks outperformed, with the Nifty Smallcap100 index increasing by 0.58 percent.
Market analysts indicated that investors are likely to remain vigilant regarding global events and their potential effects on market dynamics.
“Initially, the domestic market displayed signs of recovery but ultimately closed with modest losses after the announcement of a relatively lower 26 percent tariff on US imports,” said Vinod Nair of Geojit Investments Limited.
“While the tariff poses short-term hurdles, India's economic resilience and existing bilateral trade agreements may help alleviate the overall impact,” he added.
The rupee remained stable, fluctuating within a volatile range between 85.75 and 85.35, as markets responded to Trump’s reciprocal tariff policy.
