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Sensex, Nifty Drop Sharply on April 1 Amid Trump’s Tariff Concerns and Weak Global Cues

Date: 02-apr-2025 | By: Nuztrend Team

Sensex, Nifty Drop Sharply on April 1 Amid Trump’s Tariff Concerns and Weak Global Cues

The Indian stock market saw a sharp decline at the opening bell on Tuesday, April 1, 2025, the first trading session of the new fiscal year. Both Sensex and Nifty plummeted due to heightened investor concerns over new tariff policies from US President Donald Trump set to roll out from April 2.

At 9:15 AM, the BSE Sensex was down by 572.15 points or 0.74%, standing at 76,842.77. The NSE Nifty opened lower by 125.35 points or 0.53%, trading at 23,394.00.

Tariff Fears Lead the Sell-Off

The sell-off was triggered after reports confirmed that Trump’s reciprocal tariffs would come into effect on April 2, with India being one of the countries expected to be heavily impacted. This move has sparked global market uncertainty, especially in emerging economies.

IT and Financial Stocks Among the Worst Hit

Among the 30 Sensex stocks, Infosys took the biggest hit in early trade, falling by 2.25% to ₹1,535.10. NTPC and Bajaj Finance followed, down by 1.82% and 1.66% respectively. The IT and Financial Services sectors were the most affected.

On the Nifty sectoral indices front:

  • Media Index dropped by 2.29% to 1,475.25
  • Nifty IT fell 1.76% to 36,886.15
  • Nifty Realty was down 1.42% to 851.30

Leading losers in sector-specific indices included:

  • LTIMindtree (down 3.59%), Wipro (down 3.56%), Persistent Systems (down 2.79%) in IT
  • Tips Music (down 3.74%), Network18 (down 3.58%), Zee Entertainment (down 3.39%) in Media
  • Anant Raj (down 3.81%), Macrotech Developers (down 3.58%), Brigade Enterprises (down 2.71%) in Realty

Previous Market Performance

During the previous session on March 28, both indices ended in the red. The Sensex closed 191.51 points lower at 77,414.92, while the Nifty dropped by 72.60 points to close at 23,519.35.

According to Akshay Chinchalkar, Head of Research at Axis Securities, “The Nifty’s retreat seems more like a correction within a larger rally. Support levels remain intact at 23,402, with bullish seasonal trends still in play.”

Institutional Activity and Market Outlook

Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth ₹4,352.82 crore. On the other hand, Domestic Institutional Investors (DIIs) remained net buyers, purchasing ₹7,646.49 crore worth of stocks.

Key Economic Events to Watch This Week

Market analysts suggest that investors closely track upcoming global economic data, which may further influence market sentiment:

  • April 1: US S&P Global Manufacturing PMI
  • April 2: India’s S&P Global Manufacturing PMI
  • April 3: US Initial Jobless Claims
  • April 4: US Nonfarm Payrolls and Unemployment Rate
  • Auto Companies: Monthly sales numbers for March 2025

These indicators will help shape expectations around inflation, interest rate changes, and overall global growth momentum. Any negative surprises could exacerbate the volatility seen in the first trading session of the month.

Conclusion

With geopolitical and economic uncertainties looming, including Trump’s tariff plans and crucial global data releases, investors are advised to exercise caution in the coming days. Volatility is likely to remain high as markets digest the impact of policy changes and macroeconomic indicators.

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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