Stock Market Today: Sensex Falls 499 Points as Trump’s Tariffs Rattle Investors – 3 April 2025 Update
Key Highlights:
The Stock Market Today witnessed sharp declines during opening trades on Thursday, April 3, following the overnight announcement by former US President Donald Trump, who imposed reciprocal tariffs of 26% on Indian imports. This unexpected economic move caused widespread investor anxiety, driving major benchmark indices into negative territory.
Sensex and Nifty Open Deep in the Red
As trading commenced at 9:15 am, the benchmark BSE Sensex plunged by 499.45 points (0.65%), settling at 76,117.99 points. Similarly, the broader NSE Nifty recorded a significant decline of 125.25 points (0.54%), opening at 23,207.10.
These losses are attributed largely to the ripple effects from Trump’s aggressive tariff measures, highlighting investor concerns regarding potential disruptions to India’s trade relationship with the United States.
Trump’s Tariff Announcement Shakes Investor Sentiment
President Trump’s reciprocal tariffs, announced from the White House late Wednesday, directly impacted investor sentiment, leading to broad-based selling pressure across the Indian market.
- Tariffs of 26% on Indian exports to the US triggered investor fears about future trade stability and economic repercussions.
- Market analysts view these tariffs as a significant negative development, likely to affect sectors heavily reliant on US exports, particularly IT and telecom.
Top Sensex Losers: Tata Motors, Kotak Bank, and Adani Ports
Among Sensex constituents, several blue-chip stocks faced sharp declines, particularly in the initial trading session:
- Tata Motors experienced the steepest fall, declining 2.34% to trade at ₹656.05.
- Kotak Mahindra Bank followed closely, down 2.25%, trading at ₹2,106.05.
- Adani Ports & SEZ was also significantly impacted, falling 2.22% to ₹1170.
Interestingly, Tata Motors was among the top gainers in the previous session, highlighting how quickly investor sentiment shifted due to external geopolitical developments.
Sectoral Indices: IT, Telecom, and Realty Sectors Lead the Decline
Sectoral indices, especially technology and real estate sectors, bore the brunt of today’s market volatility:
- Midsmall IT & Telecom Index dropped the most significantly, falling by 1.94% to 9,055.90 points.
- Nifty IT Index closely followed, declining 1.67% to 35,676.45 points, driven by heavy selling pressure.
- Nifty Realty Index also witnessed notable losses, down by 1.47% at 842.10 points.
These sectors are particularly vulnerable to tariffs and policy shifts due to their high exposure to international trade and cross-border investments.
Contrasting Performance from Previous Trading Session
Thursday’s market opening stood in stark contrast to Wednesday’s session, which closed positively:
- Sensex ended Wednesday’s session up 592.93 points (0.78%) at 76,617.44 points.
- Nifty previously closed higher by 166.65 points (0.72%), at 23,332.35 points.
Notably, stocks like Zomato, Titan Company, and IndusInd Bank led gains the previous day, highlighting how rapidly market dynamics can change in response to international events.
Expert Analysis: Market Reaction and Critical Support Levels
Axis Securities’ Head of Research, Akshay Chinchalkar, emphasized the severity of the reaction from Asian markets, noting:
“Asia is a sea of red due to last night’s tariff announcements, so the Nifty is expected to open weak. The first support at the 23,090-23,141 level, followed by the critical 22,800-23,000 zone, will be closely watched.”
Chinchalkar further added that Thursday’s market close would provide crucial insights into investor sentiment, particularly assessing confidence levels among bullish and bearish investors post-announcement.
Notable Sectoral and Stock Movements (Previous Session)
Despite today’s negative market sentiment, certain stocks and sectors exhibited noteworthy movements during the previous session (April 2):
- Realty Sector had surged significantly by 3.61%, led by stocks like Macrotech Developers and Godrej Properties.
- Consumer Durables had gained 2.51%, with Kalyan Jewellers and Dixon Technologies leading gains.
- Midsmall IT & Telecom had also previously risen 1.42%, driven by KPIT Technologies and Tata Elxsi.
This contrasts sharply with Thursday’s downturn, underlining heightened market volatility.
Institutional Investors: FIIs Net Sellers, DIIs Continue Buying
On Wednesday, institutional investor activity highlighted differing market views:
- Foreign Institutional Investors (FIIs) remained cautious, selling equities worth ₹1,538.88 crore.
- Domestic Institutional Investors (DIIs) maintained confidence, recording net purchases amounting to ₹2,808.83 crore, signaling resilience in domestic investor sentiment.
The contrasting strategies reflect varied market outlooks in response to the evolving international trade scenario.
Outlook and Investor Strategy Ahead
As markets adjust to Trump’s tariffs, investors are advised to remain vigilant, closely monitoring both sector-specific impacts and overall market movements. Experts suggest focusing on defensive sectors and robust domestic-oriented businesses less exposed to international trade fluctuations.
Critical support and resistance levels outlined by analysts will be essential indicators in the coming trading sessions, dictating short-term market trends.
Market Volatility to Persist Amid Global Uncertainty
Today’s stock market downturn clearly reflects heightened sensitivity to global trade disruptions. Trump’s reciprocal tariffs have significantly impacted investor confidence, particularly within export-dependent sectors.
As market participants navigate these turbulent times, staying informed and strategically cautious remains essential for mitigating risk and capitalizing on emerging investment opportunities amidst uncertainty.
The Hindustan Herald Is Your Source For The Latest In Business, Entertainment, Lifestyle, Breaking News, And Other News. Please Follow Us On Facebook, Instagram, Twitter, And LinkedIn To Receive Instantaneous Updates. Also Don’t Forget To Subscribe Our Telegram Channel @hindustanherald
