Mumbai: On Friday, Indian frontline indices opened sharply lower, reflecting a global sell-off triggered by US President Donald Trump's announcement of reciprocal tariffs. This move led to increased market volatility worldwide, impacting investor sentiment in India.
At 10:03 AM, the BSE Sensex was down by 702 points, or 0.92 per cent, at 75,592, while the Nifty 50 plummeted 278 points, or 1.20 per cent, to 22,971. The early trading session saw significant pressure on midcap and small-cap stocks, with the Nifty Midcap 100 Index losing 669 points (1.34 per cent) at 51,464, and the Nifty Small cap 100 Index falling 253 points (1.56 per cent) to 16,001.
Sectoral Performance: Broad-Based Weakness
Across sectors, auto, IT, PSU banks, pharma, FMCG, metals, realty, and energy were the major laggards, reflecting widespread selling pressure. Interestingly, financial services emerged as the only sector showing gains amidst the turmoil.
In the Sensex pack, HDFC Bank, Bajaj Finance, Bharti Airtel, and Mahindra & Mahindra (M&M) were the top gainers. Conversely, companies like Tata Motors, Tata Steel, L&T, IndusInd Bank, Maruti Suzuki, Reliance Industries, Sun Pharma, Infosys, and Tech Mahindra faced the brunt of selling pressure.
Global Markets & Institutional Trends
The global markets experienced jitters overnight following Trump's tariff announcements, with US markets witnessing a massive sell-off. The Dow Jones Industrial Average fell nearly 4 per cent, while the Nasdaq Composite slumped by around 6 per cent.
Most Asian markets, including Tokyo, Bangkok, and Seoul, opened in the red, reflecting the ripple effect of the US market's downturn.
On the institutional front, Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth Rs 2,806 crore on April 3, marking their fourth consecutive day of net selling. In contrast, Domestic Institutional Investors (DIIs) remained net buyers for the fifth day in a row, purchasing equities worth Rs 221.47 crore.
Outlook: Technical Levels & Trading Strategies
Market observers suggest that immediate resistance for the Nifty lies at 23,350, followed by 23,600. A breakout beyond these levels could trigger a continuation of the uptrend, targeting the 200-Day Simple Moving Average (DSMA) in the 24,000–24,100 range.
While the broader index may remain range-bound in the near term, stock-specific trades present better opportunities. Traders are advised to focus on individual stock movements for potential gains.
