Indian Stock Market Declines Amid Global Uncertainty

Market Performance

The Indian stock market experienced a steep decline on April 1, 2025, influenced by global economic concerns. The Sensex dropped by 1,390 points, or 1.80%, closing at 76,024.51. Similarly, the Nifty 50 fell by 354 points, or 1.50%, settling at 23,165.70.

Throughout the session, the Sensex opened at 76,882.58 and reached an intraday low of 75,912.18. Midcap stocks declined by 1.04%, whereas small-cap stocks closed slightly higher by 0.07%. The market capitalization of companies which are listed on the BSE declined by approximately ₹3 lakh crore, dropping from ₹413 lakh crore to ₹410 lakh crore.

Among sectoral indices, the Nifty Bank index saw a 1.4% drop, while sectors such as Real Estate, IT, Consumer Durables, and Financial Services declined between 2% and 3%.

Key Market Influences

Global Trade Policy Developments

Investor sentiment was affected by the anticipation of the U.S. administration's announcement of new trade policies on April 2. The proposed tariffs could impact global trade, prompting cautious behaviour among market participants.

Upcoming RBI Policy Review

The Reserve Bank of India's Monetary Policy Committee (MPC) is scheduled to meet from April 7 to 9 to decide on interest rates. The market awaits the central bank's stance on inflation trends and economic growth.

Corporate Earnings Outlook

With earnings season approaching, market participants are keenly observing companies' financial performance for the quarter ending March 2025. The results will give insights into the broader economic recovery.

Lack of Fresh Catalysts

The stock market registered a 6% gain in March, primarily influenced by expectations of economic stability and rate cuts. However, the absence of new positive triggers has led to cautious trading.

Company Performance Overview

Declining Stocks

Several key stocks experienced significant declines, including:

• HCL Technologies: Declined by 3.90% to ₹1,530.35.
• Bajaj Finserv, HDFC Bank, Shriram Finance, Bharat Electronics: Recorded losses during the trading session.

Gaining Stocks

Despite the overall market downturn, some stocks saw positive movement:

• IndusInd Bank: Gained 5.06% to ₹682.70.
• Trent, Bajaj Auto, Jio Financial, HDFC Life: Recorded gains.

Sector Performance

• Best Performing Sector: Media and Telecom sectors closed higher by 2% each.
• Worst Performing Sector: The IT sector saw a decline of 2.45%.

Market Outlook

Analysts suggest that global trade policy developments and upcoming corporate earnings reports will influence market movements in the coming days. Market participants remain watchful of economic indicators and central bank decisions, which are expected to shape the stock market's direction in the near future.