| The domestic equity benchmarks ended with major losses on today, declining for the third day in a row. The sell-off was driven by Donald Trump’s imposition of reciprocal tariffs on 2 April with China retaliating by imposing an additional 34% tariff on US goods. Concerns have surged that a major trade war could severely impact the global economy, while investors remain cautious about the possibility of the European Union and Canada also imposing tariffs on US imports. The global market rout is fueled by escalating trade tensions and mounting recession fears in the United States. The Nifty ended below the 22,200.
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting for the fiscal year 2025-26 began today, 7 April 2025 and the final outcome of the meeting will be concluded on 9 April 2025.
All the sectoral indices on NSE ended in the red with metal, realty and media shares declining the most.
As per provisional closing, the barometer index, the S&P BSE Sensex, tanked 2,226.79 points or 2.95% to 73,137.90. The Nifty 50 index plummeted 742.85 points or 3.24%, to 22,161.60. In three consecutive trading sessions, the Sensex and Nifty dropped by 4.54% and 5.01%, respectively.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index dropped 3.46% and the S&P BSE Small-Cap index fell 4.13%.
Sellers outnumbered buyers. On the BSE, 576 shares rose and 3,505 shares fell. A total of 144 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, soared 65.70% to 22.79.
Economy:
India’s foreign exchange (forex) reserves jumped $6.596 billion to $665.396 billion during the week ended March 28, according to the latest data from the RBI.
For the week ended March 28, foreign currency assets, a major component of the reserves, increased by $6.158 billion to $565.014 billion, the RBI data released on Friday showed.
Gold reserves increased by $519 million to $77.793 billion during the week ended March 28. The special drawing rights (SDRs) were down by $65 million to $18.176 billion, the RBI said.
India’s reserve position with the IMF was also down by $16 million at $4.413 billion in the reporting week, the apex bank data showed.
Buzzing Index:
The Nifty Metal index fell 6.42% to 7,874.20. The index slumped 13.28% in three consecutive trading sessions.
Lloyds Metals & Energy (down 10.39%), National Aluminium Company (down 8.29%), Hindustan Copper (down 8%), Tata Steel (down 7.66%), JSW Steel (down 7.41%), Steel Authority of India (down 7.04%), Vedanta (down 6.92%), Jindal Steel & Power (down 6.9%), Jindal Stainless (down 6.53%) and Hindalco Industries (down 6.33%) dropped.
Stocks in Spotlight:
Tata Motors dropped 5.43% after the media reported that Jaguar Land Rover (JLR), its UK-based subsidiary, will temporarily suspend vehicle exports to the U.S. starting April 7.
Meanwhile, the company said that Jaguar Land Rover’s wholesales for Q4 FY25 were 111,413 units, up 1.1% as compared with Q4 FY24.
Trent tumbled 14.76%. The Tata Group-backed brand posted Q4FY25 revenue of Rs 4,334 crore, up 28% year-on-year (YoY). This growth is lower than its five-year compound annual growth rate (CAGR) of 36%. It is also behind Trent's 39% annual revenue growth in FY25 at Rs 17,624 crore. Meanwhile, a foreign brokerage cut its target price for Trent from Rs 7,500 to Rs 6,760, citing slower sales growth and a sharper-than-usual seasonal decline.
Zomato shed 0.38%. The company announced that Rinshul Chandra, chief operating officer (COO) of food delivery at Zomato's parent company, Eternal, has resigned from his position.
Kalyan Jewellers India rose 0.28%. The company said that it has recorded a consolidated revenue growth of approximately 37% in the recently concluded quarter as compared to the same period in the previous financial year, despite extreme volatility in gold prices.
Tata Power Company slipped 3.58%. The company said that it has received approval from the Maharashtra Electricity Regulatory Commission (MERC) to install a 100 MW battery energy storage system (BESS) in Mumbai over the next two years.
FSN E-Commerce Ventures (Nykaa) lost 3.62%. The company said that it witnessed a continued growth momentum in Q4 FY2025 with consolidated net revenue growth expected to be in low to mid twenties YoY.
Tamilnad Mercantile Bank declined 3.04%. The company said that its total deposits jumped 8.43% to Rs 53,689 crore as of 31st March 2025 as compared with Rs 49,515 crore as of 31st March 2024.
Utkarsh Small Finance Bank slipped 2.58%. The company has reported a 7.47% rise in gross loan portfolio to Rs 19,666 crore as on 31 March 2025, compared with Rs 18,299 crore as on 31 March 2024.
Delhivery jumped 4.10% after the company announced that it will acquire a controlling stake in Ecom Express for about Rs 1,400 crore from its shareholders.
Trishakti Industries fell 3.29%. The company announced that it has secured a significant order worth Rs 2.5 crore from Larsen & Toubro (L&T).
Macrotech Developers dropped 4.84%. The company said that it has achieved pre-sales of Rs 4,810 crore in Q4 FY25, which is higher by 14% as compared with the pre-sales of Rs 4,230 crore posted in Q4 FY24.
Bajaj Housing Finance lost 2.26%. The company said that its gross disbursement jumped 25.08% to Rs 14,250 crore in Q4 FY25 as compared with Rs 11,393 crore in Q4 FY24.
Global Markets:
Dow Jones futures cratered by a jaw-dropping 1,264 points, setting the tone for what could be a turbulent day on the trading floor.
European market declined sharply, deepening a global market rout that kicked off last week following the latest announcements of U.S. President Donald Trump’s tariffs regime.
Most Asian market also registered significant losses following China’s retaliatory tariffs in response to recent U.S. trade measures, deepening concerns about a prolonged trade conflict between the world’s two largest economies.
Last week, President Donald Trump announced a 10% universal import tariff effective April 5. Additional tariffs targeting key trade partners, including China, Vietnam, Japan, and the European Union, are scheduled to take effect on April 9.
In retaliation, China imposed a 34% tariff on a range of American goods, marking a sharp escalation in trade tensions. The European Union, meanwhile, is seeking alignment among its member states to craft a coordinated response, potentially involving further countermeasures.
The escalating trade conflict has raised fears of a global trade war, with potential ramifications for international supply chains, inflation, and economic growth.
In Japan, the Nikkei 225 index fell as much as 9% on Monday, reaching its lowest level since early November 2023. Japan’s export-driven economy, particularly in sectors such as automotive, technology, and manufacturing, is considered especially vulnerable to rising U.S. tariffs.
On Friday, U.S. markets had already reacted negatively to the trade developments. The Dow Jones Industrial Average declined 5.50%, marking its steepest drop in over three years. The S&P 500 fell 5.97%, and the Nasdaq Composite dropped 5.82%, with all three indices closing at six-month lows.
Despite mounting concerns, Treasury Secretary Scott Bessent downplayed fears of an imminent recession in a media interview. Federal Reserve Chairman Jerome Powell also emphasized that there is no immediate need for a change in interest rates. He noted that the administration’s trade policies could simultaneously push inflation higher while slowing economic growth.
Meanwhile, March’s nonfarm payrolls data provided a positive signal, coming in at 228,000 jobs added — a notable increase from February’s revised figure of 117,000.
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