Mumbai, April 1 – Indian stock markets kicked off the new financial year on a grim note as the BSE Sensex nosedived 1,390 points on Tuesday, spooked by a sharp sell-off in IT and private banking stocks. The market rout comes amid rising global uncertainty ahead of the US's proposed reciprocal tariffs rollout on April 2.
The broader NSE Nifty also took a hit, falling 353.65 points or 1.50% to settle at 23,165.70, marking the steepest single-day loss for both indices in over a month.
"Amid heightened global volatility ahead of the anticipated US reciprocal tariff announcement tomorrow, the domestic market witnessed a significant sell-off today," said Vinod Nair, Head of Research at Geojit Financial Services.
Other major losers included Reliance Industries, Titan, Tech Mahindra, Sun Pharma, and Larsen & Toubro.
Interestingly, other Asian markets including Seoul, Tokyo, Shanghai, and Hong Kong ended in the green, and European markets were also trading higher. US markets, meanwhile, closed mostly positive on Monday.
Markets remained shut on Monday on account of Eid-Ul-Fitr, with the previous trading session (Friday) also witnessing declines—Sensex down 191.51 points and Nifty lower by 72.60 points.
Sensex Sees Worst Fall in a Month
The 30-share BSE Sensex slumped 1,390.41 points or 1.80%, closing at 76,024.51, with 28 of its constituents ending in the red. During intraday trade, the index even tumbled 1,502.74 points to touch a low of 75,912.18.The broader NSE Nifty also took a hit, falling 353.65 points or 1.50% to settle at 23,165.70, marking the steepest single-day loss for both indices in over a month.
Global Tariff Tensions Weigh Heavy
Investor sentiment remained fragile ahead of the US President Donald Trump’s reciprocal tariff measures, which are set to be implemented on April 2. Trump has dubbed the day as "Liberation Day" for the US, intensifying global trade concerns."Amid heightened global volatility ahead of the anticipated US reciprocal tariff announcement tomorrow, the domestic market witnessed a significant sell-off today," said Vinod Nair, Head of Research at Geojit Financial Services.
IT and Private Banks Bear the Brunt
Tech and banking stocks led the fall, with heavyweights like HCL Tech, Infosys, HDFC Bank, Bajaj Finance, and ICICI Bank among the top laggards. Real estate stocks were also under pressure following Maharashtra's revision of ready reckoner rates, affecting property valuations.Other major losers included Reliance Industries, Titan, Tech Mahindra, Sun Pharma, and Larsen & Toubro.
IndusInd Bank, Zomato Buck the Trend
Defying the overall market gloom, IndusInd Bank surged over 5%, while Zomato ended marginally higher.FIIs Pull Out Over ₹4,350 Crore
Data from the exchanges showed that foreign institutional investors (FIIs) were net sellers to the tune of ₹4,352.82 crore on Friday, adding to the downward pressure.Brent Crude and Global Market Trends
Adding to the bearish mood, Brent crude prices edged higher by 0.12% to $74.86 a barrel, stoking inflationary concerns.Interestingly, other Asian markets including Seoul, Tokyo, Shanghai, and Hong Kong ended in the green, and European markets were also trading higher. US markets, meanwhile, closed mostly positive on Monday.
Year-to-Date Gains Still Intact
Despite Tuesday’s sharp correction, Indian equities ended the 2024–25 financial year with robust gains. The Sensex rose 3,763.57 points (5.10%) and the Nifty climbed 1,192.45 points (5.34%) during the year.Markets remained shut on Monday on account of Eid-Ul-Fitr, with the previous trading session (Friday) also witnessing declines—Sensex down 191.51 points and Nifty lower by 72.60 points.
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