Mumbai, April 3 – Indian stock markets ended in the red on Thursday, with the benchmark BSE Sensex dropping by 322 points. The decline came in the wake of US President Donald Trump's announcement of retaliatory tariffs on India and nearly 60 other countries, triggering a sell-off in IT stocks and reflecting weak global cues.
The 30-share BSE Sensex closed 322.08 points, or 0.42 percent, lower at 76,295.36. During the day, it had plummeted as much as 809.89 points before recovering some ground, helped by gains in pharmaceutical shares.
The broader NSE Nifty also fell, ending 82.25 points or 0.35 percent lower at 23,250.10, after slipping as much as 186.55 points earlier in the session.
The Trump administration's decision to impose a 27 percent retaliatory tariff on Indian imports, citing India’s high duties on American goods, raised investor concerns. The move is part of a broader trade strategy aiming to reduce the US trade deficit and boost domestic manufacturing.
Ajit Mishra, Senior Vice President (Research) at Religare Broking Ltd., stated that the Nifty opened lower in response to the US tariffs but managed to recover somewhat due to resilience in key stocks. He added that despite the recovery, the market largely traded within a range.
Among the Sensex constituents, major laggards included Tata Consultancy Services, HCL Technologies, Tech Mahindra, Infosys, Tata Motors, Bajaj Finance, Kotak Mahindra Bank, Mahindra & Mahindra, Bharti Airtel, Maruti Suzuki India, and Tata Steel.
In contrast, gainers included Power Grid, Sun Pharmaceuticals, UltraTech Cement, NTPC, Asian Paints, Nestle India, Titan, IndusInd Bank, and Axis Bank.
The BSE Smallcap index rose 0.76 percent, while the Midcap index gained 0.31 percent, indicating buying interest in broader markets.
Vinod Nair, Head of Research at Geojit Financial Services, noted that although there were signs of recovery during the session, the market ended slightly lower. He attributed this to the relatively low tariffs imposed on Indian goods by the US, concerns over US market softness, and disruptions in supply chains that particularly affected IT and auto stocks.
Nair added that pharmaceutical shares gained as they were excluded from the tariff list, and strong domestic macroeconomic data along with a drop in crude oil prices lent support to the broader market.
Despite the overall decline, the market capitalization of BSE-listed companies increased by Rs 35,170.32 crore, reaching a total of Rs 4,13,33,265.92 crore. On the BSE, 2,809 stocks advanced, 1,175 declined, and 139 remained unchanged.
Asian markets also saw declines, with Japan’s Nikkei falling 3 percent, Hong Kong’s Hang Seng dropping 1.52 percent, South Korea’s Kospi losing 0.76 percent, and China’s Shanghai Composite shedding 0.24 percent. European markets were trading lower in early sessions, while US markets had ended higher on Wednesday.
On the commodity front, Brent crude prices declined by 3.68 percent to USD 72.19 per barrel.
According to exchange data, foreign institutional investors sold shares worth Rs 1,538.88 crore on Wednesday, while domestic institutional investors purchased equities worth Rs 2,808.83 crore.
On Wednesday, the Sensex had gained 592.93 points and the Nifty rose by 166.65 points.
