Stock Market Today Highlights: Why this Crash? What’s Ahead?

Stock Market Today, 4th April 2025: The Indian stock market witnessed a massive dip on Friday, followed by US reciprocal trade tariffs. Key sectors such as pharmaceuticals, IT, automobile, etc., had a solid impact of Trump’s tariff announcement. The benchmark index, Sensex, sank 931 points to close at 75,364.60, and on the other side, Nifty 50 plunged 346 points to close at 22,904.20. 

This bloodbath in the Indian stock market today eroded over ₹11 lakh crore in market cap as investors’ sentiments were affected by US President Donald Trump’s announcement on reciprocal tariffs on Imports from 60 countries. 

India is included in these 60 countries, and tariff policy targeted sectors such as pharmaceuticals, IT services, and automotive parts. 

Higher Selling Pressure Drags Market Down

There was general debilitation in the session on Friday, with all of the key indexes closing lower for the day. The Nifty Bank index fell 95 points to 51,503 without providing any support to the market, while the Nifty Midcap 100 index plummeted drastically by 3%, or 1,516 points, to a close at 50,646.

The extent of the sell-off was highlighted by the advance-decline ratio, which stood at a wretched 1:4. The market was extremely polarized, with 89 stocks reaching their 52-week lows and 66 setting their 52-week highs.

Nifty Pharma and NiftyIT

Nifty Pharma and Nifty IT faced a higher downward trajectory. Nifty Pharma slumped by 4% on Friday, 4th April 2025, whereas Nifty IT was also down by 4%. US President Donald Trump’s tariff announcement impacted pharmaceutical imports. As a result, pharma stocks such as Dr. Reddy’s Laboratories, Zydus Lifesciences, and Sun Pharmaceuticals witnessed higher selling pressure. On the other hand, IT stocks including TCS, Infosys, Wipro, HCL Tech, Tech Mahindra, and LTIMindtree, faced decline from 2% to 7%. 

Key Stocks in Movements

1. Tata Consultancy Services (TCS) is one of the largest contributors to the Nifty50. It touched its 52-week low in today’s market season due to high selling pressure in NIFTYIT. 
2. Bajaj Electricals, Central Bank of India, Tata Elxsi, UCO Bank, and many other companies reached 52-week lows.
3. JSW Holdings, Kaveri Seed Company, and 64 other stocks reached their fresh 52-week highs.  

Stock Market Today: What Experts Says?

“Today’s decline was largely due to fears of global trade conflict and threat of a recession, both exacerbated by President Trump’s aggressive tariff policy”. ~ Vaibhav Vidwani (Research Analyst at Bonanza Portfolio) 

US President Donald Trump proposed a 10% blanket tariff on all US imports and a specific 26% tariff on Indian pharmaceutical and tech exports, which impacted the stock market today. The effect of this global backdrop is visible not only in India but also in global markets. 

Key Levels to Consider 

Analysts shared some of the key levels for benchmark indices to trade and invest. For Nifty50, immediate support at 22,900 could be the best tested during today’s closing session. A breach of this level could bring the further downfall of Nifty 50 towards 22,700 to 22,600. Moreover, on the upside, level of 23,100 would remain the first resistance, followed by the 50-day moving average near 23,250. For the Sensex, the next support would lie near 74,900, and resistance could be 76,300. 

What is Ahead?

The Indian stock market today fails to digest the implications of geopolitical developments. Investors are advised to remain cautious due to anticipated volatility in the market. Analysts claimed to pick quality stocks in the large-cap space with robust fundamentals and diversified revenue streams. Moreover, the head of research at a leading domestic brokerage claimed that volatility will remain high in the coming sessions. Defensive sectors such as FMCG may offer relative safety during these macroeconomic backdrops. 

Key Takeaways

• Sensex closed 931 points lower than its opening at 75,364.60, while Nifty50 ended at 22,904 (346 points down).
• IT and pharma stocks were most affected by Trump’s tariff concerns. 
• 89 stocks hit 52-week lows, including TCS, LTIMindtree, Tata Elxsi, etc. 
• ₹11 lakh crore in wealth is erased in today’s trading session. 
• Experts are anticipating continuous volatility in the coming sessions.

Stay informed with Univest to get daily stock market highlights, expert views, and in-depth analysis of how global development shapes stock market behaviour!

Disclaimer: The news written is only for educational purposes. Univest does not suggest investing or trading in securities. Conduct your research before investing in the stocks to make an informed investment decision.  

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