The domestic equity market endured a brutal blow today, closing deep in the red for the third straight session, as traders were left nursing staggering losses. A global sell-off—driven by escalating trade tensions and rising fears of a U.S. recession—sent tremors through Dalal Street, leaving investor sentiment severely bruised. The Nifty closed below 22,170, with metals, banks, pharma, and IT stocks leading the charge in a broad-based sell-off.
China’s decision to impose a sweeping 34% reciprocal tariff on all U.S. imports starting April 10 was the match that lit an already volatile powder keg. With uncertainty looming large and no resolution in sight, panic took hold. What followed was a relentless sell-off that spared neither sector nor portfolio.
The S&P BSE Sensex plummeted 2,226.79 points, or 2.95%, to close at 73,137.90, while the Nifty 50 nosedived 742.85 points, or 3.24%, settling at 22,161.60. In just three trading sessions, the Sensex has shed 4.54%, and the Nifty has lost a staggering 5.01%.
Trent (down 14.76%), ICICI Bank (down 3.54%), HDFC Bank (down 3.24%) and Reliance Industries (down 3.20%) were major drags.
The broader markets fared even worse. The S&P BSE Mid-Cap index tumbled 3.46%, while the Small-Cap index cratered 4.13%.
On the BSE, it was nothing short of a bloodbath—only 570 stocks advanced, while a staggering 3,515 declined. Just 140 stocks held their ground, painting a grim picture of the day’s market carnage.
The India VIX—often referred to as the market’s fear gauge—soared 65.7% to 22.79, reflecting the sheer nervousness among traders who are now bracing for heightened volatility in the days ahead.
Amid this turmoil, all eyes are now on the Reserve Bank of India's Monetary Policy Committee (MPC) meeting, which kicked off today, April 7. With the outcome due on April 9, investors are hoping for a ray of stability in a month that has already delivered more than its fair share of pain.
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.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was up 1.96% to 6.594 as compared with previous close 6.460.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.8200, compared with its close of 85.4400 during the previous trading session.
MCX Gold futures for 5 June 2025 settlement rose 0.43% to Rs 88,457.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.25% to 102.77.
The United States 10-year bond yield rose 0.10% to 4.000.
In the commodities market, Brent crude for June 2025 settlement tumbled $1.87 or 2.85% to $63.71 a barrel.
Global Markets:
Dow Jones futures dropped sharply by 645 points, signaling a potentially volatile session ahead for U.S. markets.
European markets also declined significantly, as growing concerns about a global trade war heightened recession fears and weighed heavily on an already fragile economic landscape.
In Asia, major indices registered notable losses following China’s announcement of retaliatory tariffs in response to recent U.S. trade measures. This development has deepened concerns about a prolonged trade dispute between the United States and China.
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.
Stocks in Spotlight:
Delhivery jumped 4.53% after the company announced that it will acquire a controlling stake in Ecom Express for about Rs 1,400 crore from its shareholders.
Trent nosedived 14.76% to Rs 4740.55, after investors were left underwhelmed by its Q4 business update. 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. Market sentiment and high valuations also dragged the stock lower.
Tata Motors dropped 5.54% 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. The move comes in response to the Trump administration's recent 25% import tariff on foreign automobiles. JLR plans to use this pause to work with business partners, reassess trading strategies, and chart a course for the mid- to long-term. Meanwhile, the company said that JLR’s wholesales for Q4 FY25 were 111,413 units, up 1.1% as compared with Q4 FY24.
Siemens soared 9.48% to Rs 2814.65 as the stock turned ex-demerger, following the spin-off of its energy business in India. The record date and ex-date for the demerger both fell on Monday, 7 April 2025. Eligible shareholders will receive one share of Siemens Energy India for every share held in Siemens India, in a 1:1 ratio.
Mazagon Dock Shipbuilders declined 8.73% to Rs 2319.30 after offer for sale announced by the company’s promoter concluded on Monday, 7 April 2025. This total offer size was 4.01%.
Zomato shed 0.43%. The company announced that Rinshul Chandra, chief operating officer (COO) of food delivery at Zomato's parent company, Eternal, has resigned from his position.
Tata Power Company slipped 3.85%. 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 1.9%. 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 2.65%. 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 1.55%. 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.
Macrotech Developers dropped 6.12%. 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 2.75%. The company said that its gross disbursement jumped 25.08% to Rs 14,250 crore in Q4 FY25 compared with Rs 11,393 crore in Q4 FY24.