Indian equity indices ended on a negative note with the Nifty at 22,400 on April 9.
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The Sensex was down 379.93 points or 0.51 percent at 73,847.15, and the Nifty was down 136.70 points or 0.61 percent at 22,399.15 at close. Wipro, SBI, Tech Mahindra, L&T, and Trent were among the major losers on the Nifty.
Gainers included Nestle, HUL, Tata Consumer, Titan Company, and Power Grid Corp. The BSE Midcap index was down 0.8 percent and the Smallcap index was down 1 percent. All sectoral indices ended in the red except for Consumer Durables (up 0.3 percent) and FMCG (up 1.5 percent).
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Realty, IT, and PSU Bank were down 2 percent each. Today’s fall was largely attributed to escalating global trade tensions. The imposition of a 26% tariff on Indian goods by the U.S. heightened investor concerns about potential economic impacts.
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The RBI’s decision to cut interest rates by 25 basis points to stimulate growth did not improve market sentiment. It remained cautious. IT and pharmaceutical stocks were among the hardest hit.
The IT sector declined by 2.3% due to its significant exposure to the U.S. market. The BSE Midcap and Smallcap indices dipped by 0.73% and 1.08%, respectively. Volatility is likely to continue over the next few weeks with a negative bias.
Uncertainty caused by the U.S. tariffs has pushed investors to reduce equity bets. The local currency took a huge knock over the past few sessions coupled with renewed FII selling. Nifty continues to trade below the upper band of the falling channel and the 21-day EMA, indicating short-term weakness and resistance near 22,500.
Markets fall on U.S. tariff impact
The RSI shows a bearish crossover, reinforcing the negative momentum. The trend is expected to stay weak below 22,500.
A breakout could potentially drive the index to 22,750–22,800. Failure to cross 22,500 may drag it down toward 22,000. Markets slipped after a brief rebound, losing over half a percent as the choppy trend persisted.
Sentiment took a hit following the announcement of fresh U.S. tariffs on China, leading to a gap-down opening and a largely range-bound session thereafter. The outcome of the MPC meeting—where a 25-bps rate cut was announced along with a shift to an accommodative stance—failed to evoke any meaningful market reaction. As a result, the Nifty index closed at 22,399.15, down 0.59%.
Global financial markets are witnessing renewed selling pressure following the enactment of reciprocal tariffs. A trade war is escalating global risk, with a rise in U.S. bond yields prompting a sell-off in the world’s safe treasury assets. In India, a cut in the repo rate, along with the adoption of an accommodative policy stance, is taken as a constructive step.
However, it has done little to uplift overall market sentiment, as the world is embracing recessionary risk. The IT sector continues to lag ahead of Q4 results, which are estimated to be weak. After the initial decline, the Index remained range-bound for the rest of the day, ultimately closing at 22,399.15 with a loss of 136.70 points.
Except for the Auto and FMCG sectors, all other sectors ended the session in red, with PSU Banks and IT being the major laggards. A notable disparity was observed in the broader market. Midcaps performed in line with the Frontline Index, while Smallcaps underperformed.
The support level for the Index remains at 22,270, while the resistance level has shifted lower to 22,530. The Indian rupee ended 45 paise lower at 86.69 per dollar on Wednesday versus the previous close of 86.24.
