After showing a gradual weakness and range-bound action over the past few sessions, the Nifty witnessed a sharp sell-off on Friday, marked by broad-based weakness across sectors. The index closed the day 346 points lower at 22,904.
The Nifty fell nearly 400 points, while the Sensex fell 1,000. The pain was felt in the broader markets with the Nifty Midcap index declining nearly 2,000 points and the Smallcap index shaving off over 4%.
The sell-off in the broader markets have resulted in an erosion of ₹11 lakh crore in the combined market capitalisation of BSE-listed companies on April 4.
Indian benchmark indices declined after the Dow Jones fell 2,200 points overnight. The S&P 500 and Nasdaq fell 6% each, leading to a loss of $5 trillion in market capitalisation.
Sectorally , barring the Nifty FMCG index, all sectors closed in negative territory. Metal, Pharma, Oil & Gas, Realty, and IT sectors bore the brunt of the sell-off, registering the most substantial losses.
Trump’s comment on an impending ‘pharma tariff’ dragged the sector, with the Pharma index falling 4%. IT stocks extended losses as the odds of a US recession rose above 60%, sending the Nifty IT index down 4%. Auto stocks were also under pressure on tariff concerns, with Tata Motors, Motherson, and Bharat Forge among the top losers.
Shares of Indian Metal companies Vedanta Ltd., Hindalco Ltd., Hindustan Copper Ltd., NALCO Ltd., and Tata Steel Ltd. fell between 5% and 9% on Friday after US President Donald Trump’s tariff announcements has roiled metals globally.
Apart from developments on the US tariff front, market focus will be on the Reserve Bank of India’s monetary policy announcement on April 9 and the Q4FY25 earnings beginning with TCS results on April 10 next week.
Meanwhile, both foreign investors and domestic institutional investors remained net sellers in the cash market on Friday.
What do the Nifty 50 charts indicate?
Nagaraj Shetti of HDFC Securities believes the short-term trend of Nifty remains weak and the downward correction seems to have gained momentum. Further weakness below 22,800 levels, the Nifty could slide down to the next lower trajectory of around 22,350 levels in the near term. Any pullback rally from here could find resistance around 23,150 levels.
Initially, the Nifty found support at the crucial 22,900 level. However, sentiment remains weak, and a further decline from the current level could trigger additional market correction, said Rupak De of LKP Securities.
“On the lower end, if Nifty falls below 22,900, it may move toward 22,676. On the higher end, resistance is seen at 23,100. A move above 23,100 would provide a clear signal for a strong uptrend,” De added.
According to Om Mehra of SAMCO Securities, the support is seen in the broader 22,600 zone. A break below this level could lead to a gap-fill and may pull the index towards 22,550.
What do the Nifty Bank charts indicate?
The Nifty Bank ended the session at 51,502.70, registering a mild decline of 0.18%, yet outperforming its domestic sectoral peers amid widespread market turbulence.
“On the hourly chart, signs of mild weakness are emerging, and a short-term corrective move towards the 50,800 level cannot be ruled out. The support zone of 50,500–50,600 remains crucial. A sustained hold above this zone could act as a springboard for the index to resume its upward trajectory in the sessions ahead.” Mehra said.
Here are the stocks to watch ahead of Monday’s trading session:
– Tata Motors: The company’s shares will be in focus after its UK subsidiary, Jaguar Land Rover (JLR), announced a pause in vehicle shipments to the US, reacting to steep tariffs introduced by Trump’s administration.
– ITC acquires 2.62 lakh equity shares of ample foods for ₹131 crore. With this, company’s shareholding in Ample Foods aggregates 43.75% of its share capital.
– Yes Bank: Private sector lender is facing two senior-level exits across in private and SME banking verticals, prompting a portfolio reshuffle, two people directly aware of the matter told CNBC-TV18 on the condition of anonymity.
– Federal Bank: Shalini Warrier resigns as executive director of the bank and to be relieved between May 15-31, 2025.
– TVS Motor to integrate ION Mobility’s assets, intellectual property and talent into its operations.
– AstraZeneca Pharma gets Central Drugs Standard Control Organization (CDSCO) permission to import for sale and distribution of Osimertinib Tablets for an additional indication.
– Puravankara: Arm Starworth Infrastructure gets Letter of Intent (LoI) for project worth ₹118.6 crore from Ranka Properties for a project ‘Ranka Ankura’.
– Godrej Properties to develop a residential project in Versova, Mumbai, estimated revenue potential at ₹1,350 crore.
