Stock Market Today, April 04: Indian benchmark equity indices, Sensex and Nifty, witnessed a sharp decline on Friday, with both indices tanking over 1% due to investor concerns over the US-imposed reciprocal tariffs on major economies, including India. This move has sparked fears of a global economic slowdown.
The BSE’s 30-share Sensex slid 1.22%, or 930.67 points, to close at 75,364.69, while the broader Nifty50 tanked 1.49%, or 345.65 points, to settle at 22,904.45. Major selling was seen in sectors such as pharma, oil & gas, information technology (IT), metal, and auto.
According to Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, “Markets slumped in sync with the crash in global equities, with sectors crashing over 2-6% on broader-based selling. Investors fear Trump’s reciprocal tariff policy will fuel recession and drive inflation in the US, engulfing other key economies as well.”
US President Donald Trump’s announcement of reciprocal tariffs on various trading partners, including India, has led to a 26% hike in tariffs for India. Aditi Gupta, Economist at Bank of Baroda, noted, “Higher tariffs can stifle export margins, leading to lower production and growth. Global inflation is also likely to increase as countries announce retaliatory tariffs.”
The likelihood of retaliatory measures against the US has heightened uncertainty, with US bond yields and oil prices trending downward. Vinod Nair, Head of Research at Geojit Investments Limited, stated, “This reflects concerns over potential economic slowdown and increased recessionary risks.”
All sector indices witnessed heavy selling pressure, with Nifty Metal crashing 6.56% and Nifty Pharma falling 4.03%. Nifty Auto lost 2.7%, Nifty Oil&Gas fell 3.78%, and Nifty IT diving 3.58%. The broader market also declined sharply, with Nifty Midcap 100 declining 2.91% and Nifty Smallcap 100 tanking by 3.56%.
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