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Indian Stock Market Mixed on April 16: Sensex, Nifty Dip as Tariff Concerns Weigh on Global Sentiment

Date: 16-apr-2025

Indian Stock Market Mixed on April 16: Sensex, Nifty Dip as Tariff Concerns Weigh on Global Sentiment

On April 16, 2025, Indian stock indices opened in the red, reflecting cautious investor sentiment after Monday’s strong gains and amid lingering concerns over U.S. tariff policies and global trade volatility.

The BSE Sensex declined by 121.49 points to open at 76,613.40, while the NSE Nifty 50 dropped 42.25 points to begin at 23,286.30. The dip came after a robust rally on April 15, which saw the Sensex jump over 1,570 points and the Nifty gain more than 500 points.

Sector Performance: Mixed Sentiment

Market movement was uneven across sectors, with a blend of losses and sharp gains:

  • City Gas Distribution: Stocks like IGL, MGL, and Adani Total Gas dropped up to 6.4% after revised government gas allocations came into effect today.
  • Banking: IndusInd Bank rose 2.45% following a favorable audit report regarding its derivatives exposure.
  • Insurance: ICICI Prudential Life Insurance soared over 5% after reporting a 122% YoY jump in Q4 net profit to ₹386 crore.
  • Renewables: IREDA surged 6.5% after posting a 49% YoY rise in consolidated net profit to ₹502 crore for Q4.

Investor Sentiment Remains Divided

While foreign institutional investors (FIIs) continue to offload holdings amid global uncertainty, domestic institutional investors (DIIs) have stepped in, providing some cushion. Reports suggest FIIs have pulled out $4 billion so far this month, while DIIs have injected nearly $3 billion back into the market.

Experts suggest that India’s relative insulation from the U.S.-China tariff battle, combined with a focus on local growth drivers, is helping the market maintain stability.

Currency and Commodities Update

  • Rupee: The Indian rupee strengthened by 24 paise, trading at 85.56 against the U.S. dollar in early trade.
  • Gold: Prices soared to a new all-time high of ₹94,573 per 10 grams as investors sought safety amid global economic uncertainty.

Market Outlook: Short-Term Bullish, Globally Cautious

According to technical analysts, the Nifty 50's uptrend remains intact in the near term. Resistance is seen around 23,650–23,870, with immediate support at 23,200. Market direction will be influenced by earnings announcements, global cues, and any updates related to the U.S. trade policy under President Trump.

“With volatility driven by macro factors and global trade, investors are advised to tread carefully while remaining selective in fundamentally strong sectors like finance, auto, and renewables,” said a senior analyst from ICICI Securities.

Disclaimer: This article is based on publicly available information from various online sources. We do not claim absolute accuracy or completeness. Readers are advised to cross-check facts independently before forming conclusions.

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