Indian Stock Market Recap: Sensex Drops Over 900 Points, Nifty Slips Below 23,000

Market Performance

On April 4, 2025, Indian equity benchmarks ended the session with significant losses. The Sensex declined by 930.67 points, or 1.22%, to close at 75,364.69. The Nifty 50 also dropped, falling 345.65 points or 1.49%, to end at 22,904.45. The Nifty Bank index showed a modest decrease of 94.65 points, or 0.18%, settling at 51,502.70.

The broader market followed the same trend. The BSE Midcap index fell by 3.08%, and the Smallcap index registered a deeper cut of 3.43%.

For the week, the Sensex and Nifty posted declines of 2.6%. The Information Technology sector was the most impacted, recording a 9% weekly fall—its worst performance since the pandemic era.

Sectoral Overview

All major sectoral indices ended in negative territory:

• Metal Index: down 6.5%
• Pharma Index: down 4%
• Realty Index: down 3.6%
• Oil & Gas Index: down nearly 4%
• Auto, Consumer Durables, Power, PSU, Media, and IT indices fell between 2% and 3%

Among sector indices, Nifty FMCG posted a marginal gain of 0.04%, while Nifty Metal registered the steepest drop, falling by 6.56%.

Key Developments

Global Trade Tariffs and Market Reaction

Global developments primarily influenced the sharp selloff, especially new trade policy signals from the United States. US President Donald Trump indicated that new tariffs on pharmaceutical imports may be imposed. This announcement reversed the brief relief in the pharmaceutical sector earlier in the week.

Global Market Influence

The sentiment across global equity markets was downbeat. US indices saw sharp declines — the Nasdaq fell 5.97%, and the S&P 500 dropped 4.84%. Major Asian indices were also affected, with Japan’s Nikkei losing over 3% and South Korea’s Kospi down nearly 2%.

Decline in Investor Wealth

The total market capitalization of companies which are listed on the BSE fell from over ₹413 lakh crore in the previous session to approximately ₹403 lakh crore. This marks a loss of more than ₹10 lakh crore in investor wealth in a single trading day.

Company Updates

Mazagon Dock Shipbuilders

Shares of Mazagon Dock Shipbuilders declined by 7%. This drop came after the Government of India announced a plan to sell up to 4.83% of its stake in the company through an offer-for-sale on April 4 and April 7.

Avenue Supermarts (DMart)

Avenue Supermarts witnessed its sharpest decline in nearly three months following the release of its Q3 FY25 business updates.

Stock Movements

The top gainer on the Nifty:

• Tata Consumer Products: closed at ₹1,087.85, up 1.57%

Top loser on the Nifty:

• Tata Steel: closed at ₹140.39, down 8.61%

Financial Summary of the Market

• Sensex: 75,364.69 (down 930.67 points / -1.22%)
• Nifty 50: 22,904.45 (down 345.65 points / -1.49%)
• Nifty Bank: 51,502.70 (down 94.65 points / -0.18%)
• BSE Midcap: down 3.08%
• BSE Smallcap: down 3.43%

Factors Influencing the Decline

1. Tariff Announcements: Indications from the US regarding upcoming pharmaceutical tariffs added pressure to pharma and related sectors.
2. Weak Global Cues: Broad declines in global indices impacted domestic investor sentiment.
3. Market Capitalization Loss: Over ₹10 lakh crore was wiped off from BSE-listed stocks, reflecting the intensity of the market reaction.
4. Upcoming Q4 Results: Investors closely watch forthcoming quarterly results, expecting a modest recovery. Any disappointment could lead to further volatility.
5. Inflation and Rate Concerns: Concerns that US inflation could rise due to tariffs have led to speculation that the Federal Reserve may not cut interest rates this year, which could indirectly impact Indian markets.

Summary

Indian equity markets ended the week weaker, driven by global trade policy developments and broad-based sector declines. Investor sentiment remained subdued amid global uncertainty, with major indices posting their most significant single-day drops in recent months. The focus now shifts to the upcoming Q4 earnings season and global macroeconomic indicators.