Synopsis
On April 1, the Indian stock markets faced a notable downturn as the Sensex fell by 1.80% amid concerns regarding upcoming US reciprocal tariffs. The decline affected most sectors, with heightened market volatility indicating investor caution ahead of critical trade announcements.Key Takeaways
- Sensex dropped by 1.80% on the first trading day.
- Upcoming US reciprocal tariffs triggered investor concerns.
- Most stocks in the Sensex index closed lower.
- Market volatility surged, indicating cautious sentiment.
- Sector declines were led by IT and real estate.
Mumbai, April 1 (NationPress) The Indian stock markets experienced a significant downturn on the inaugural trading day of the new financial year. This decline was primarily triggered by investor concerns regarding global market developments, particularly the impending US reciprocal tariffs set to be announced on April 2.
The Sensex, which tracks 30 prominent companies, fell by 1,390.41 points or 1.80 percent, closing at 76,024.51. Throughout the trading session, it oscillated between an intra-day peak of 77,487.05 and a low of 75,912.18.
Similarly, the Nifty index plummeted 353.65 points or 1.50 percent, ending at 23,165.70. It reached a high of 23,565.15 and a low of 23,136.40 during the day.
Almost every stock within the Sensex index closed lower, with the exceptions of Zomato, IndusInd Bank, and State Bank of India (SBI).
The most significant decliners included HCL Technologies, Bajaj Finserv, HDFC Bank, Bajaj Finance, and Infosys, which witnessed share price reductions of up to 3.66 percent.
Midcap and smallcap stocks also experienced downward pressure. The Nifty Midcap100 index concluded 0.86 percent lower, while the Nifty Smallcap100 index decreased by 0.70 percent.
The BSE Midcap index dropped 0.9 percent, while the Smallcap index managed a minor gain of 0.2 percent.
Sector-wise, most indices closed in the red, with IT, real estate, and consumer durables sectors declining by approximately 2 percent each. Only media, oil & gas, and telecom sectors managed to remain in positive territory.
Market volatility surged, as indicated by the India VIX, known as the fear index, which soared 8.37 percent to 13.78 points. This rise suggests that investors are growing increasingly cautious about the market's future.
Analysts believe that market fluctuations may persist until there is greater clarity regarding global trade relations and economic policies, particularly in light of investor concerns regarding Trump's tariff policies and their implications for international trade.
“In light of heightened global volatility ahead of the US reciprocal tariff announcement, the domestic market experienced a substantial sell-off today. Investors are keenly awaiting the details of these tariffs while closely monitoring ongoing negotiations for a potential Indo-US trade agreement,” stated Vinod Nair, Head of Research at Geojit Investments Limited.
The IT sector was particularly hard-hit due to its significant exposure to the US market, while real estate stocks faced declines following Maharashtra's increase in ready reckoner rates, impacting property valuations.
