Indian Markets Close FY25 Lower Amid Trade Tensions

Market Performance

Indian stock markets ended the final trading session of FY25 negatively, influenced by concerns surrounding upcoming U.S. tariffs and economic data. The Nifty 50 index fell by 0.40% to 23,496 points, while the Sensex declined 0.35%, closing at 77,336 points.

Broader market indices also mirrored this downtrend. The Nifty Midcap 100 slipped 0.47% to 51,596 points, while the Nifty Smallcap 100 declined 0.45% to 16,052 points.

Despite the day's losses, Nifty 50 and Sensex recorded annual gains of 6.37% and 6%, respectively, for FY25. These gains were primarily driven by a strong recovery in the latter half of March, supported by robust foreign portfolio investor (FPI) inflows.

Trade Tensions and Global Factors

Global trade tensions escalated following the U.S. administration's announcement of a 25% tariff on automobile imports. Further uncertainty arose as the U.S. President indicated potential higher tariffs on the European Union and Canada if they respond with countermeasures. Markets anticipate additional details regarding affected countries and sectors in the upcoming tariff announcement on April 2.

Volatility is expected to remain high, with concerns about the scale, duration, and retaliatory actions contributing to market uncertainty.

Sectoral Performance

Among major sectoral indices, Nifty FMCG emerged as the top performer, rising 0.59%, driven by expectations of improved liquidity conditions. Nifty Private Bank posted a modest gain of 0.15%.

Conversely, Nifty IT was the worst-performing sector, falling 1.76%, reflecting concerns over a slowdown in U.S. growth amid rising trade tensions. Other underperforming sectors included Nifty Realty, Nifty Auto, Nifty Metal, and Nifty Pharma, which registered losses between 0.65% and 1.45%.

Key Stock Movements

Biggest Gainer:

• Tata Consumer Products: ₹1,001.90 (+2.91%)

Biggest Loser:

• Wipro: ₹262.25 (-3.66%)

Other major losers included IndusInd Bank, Shriram Finance, Cipla, and Mahindra & Mahindra (M&M). Notable gainers besides Tata Consumer Products were Kotak Mahindra Bank, Apollo Hospitals, ONGC, and ICICI Bank.

The BSE Midcap index fell by 0.7%, while the BSE Smallcap index declined by 0.35%.

Summary

Indian markets closed FY25 with a downward trend on the final trading day, driven by escalating U.S. trade tensions and concerns over upcoming tariffs. While broad-based losses marked the session, the FMCG sector showed resilience. Despite the volatility, the Nifty 50 and Sensex posted annual gains, primarily supported by a recovery fueled by foreign investor participation in the latter part of March. Markets remain cautious ahead of the April 2 tariff announcement, which is expected to provide further clarity on future trade policies and their potential impacts.