Benchmark indices markets remained under pressure for a second consecutive session on April 4, weighed down by Trump's tariffs, as Nifty fell below 23,000 and the Sensex saw a cut of over 900 points, with the BSE mid and smallcap both down more than 3 percent at close.

At close, the Sensex was down 930.67 points or 1.22 percent at 75,364.69, and the Nifty was down 345.65 points or 1.49 percent at 22,904.45. All sectoral indices ended in the red, including the pharma index, which lost 4 percent after US President Trump hinted that pharmaceuticals too are under consideration for trade tariffs.

For the week, the BSE Sensex and Nifty fell 2.6 percent each, while the IT index suffered the most, falling 9 percent on a weekly basis due to uncertainty over IT client spending. This was the worst week for the IT index since the pandemic years.

The biggest losers on the Nifty included Tata Steel, Hindalco Industries, ONGC, Tata Motors, Cipla, while gainers were Bajaj Finance, Tata Consumer, HDFC Bank, Apollo Hospitals, and Nestle India.

On the sectoral front, the Metal index plunged 6.5 percent, Pharma index shed 4 percent, Realty index tumbled 3.6 percent, Oil & gas index slipped nearly 4 percent, while Auto, Consumer Durables, Power, PSU, Media, Information Technology indices lost between 2-3 percent.

The IT stocks extended losses on fears of an increasing chance of US recession, while metals and autos too were weighed down by the potential business impact arising from Trump's tariffs. Crude oil slipping to a four-year low weighed on upstream oil majors during the session.

Among stocks, Mazagon Dock Shipbuilders shares fell 7 percent after Government of India is set to sell up to a 4.83 percent stake in the company via an offer-for-sale (OFS) on April 4 and April 7.

Avenue Supermarts (DMart) shares fell the most in nearly three months post Q3FY25 business updates.

Nearly 90 stocks hit 52-week low on the BSE, including, Jindal Stainless, Punjab and Sind Bank, KPIT Technologies, Sona BLW, KEI Industries, Birlasoft, Sonata Software, TBO Tek, Apar Industries, Cyient, LTIMindtree, Supreme Industries, Zydus Life, Dr Reddy's Labs, Sundram, TCS, Tata Elxsi, Kajaria Ceramics, Happiest Minds, UCO Bank.

Outlook for April 7

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty has given a consolidation breakdown on the daily chart, indicating bearishness. Initially, the index found support at the crucial 22,900 level. However, sentiment remains weak, and a further decline from the current level could trigger additional market correction.

On the lower end, if Nifty falls below 22900, it may move toward 22676. On the higher end, resistance is seen at 23100. A move above 23100 would provide a clear signal for a strong uptrend.

Ajit Mishra – SVP, Research, Religare Broking

Markets came under pressure and declined by nearly one and a half percent, largely weighed down by weak global cues. After two days of lackluster movement, the Nifty slipped below its key support level of 23,100 in early trade and continued to drift lower, eventually settling at 22,904.45. Most sectors witnessed significant pressure, with metals, pharma, and energy being the worst performers. The broader indices, which had outperformed in the previous sessions, saw a sharp correction, plunging between 3% and 4%.

The sharp fall in global markets—particularly in the US—and fresh concerns over potential tariffs on pharma impacted sentiment negatively. However, sustained strength in banking and financial stocks helped limit the overall downside to some extent. Looking ahead, we anticipate a time-wise correction in the Nifty index. Traders are advised to stay focused on stock selection and adopt a hedged strategy until further clarity emerges.