Benchmark stock market indices ended lower on Friday as Donald Trump’s proposed tariff measures dampened investor sentiment on Dalal Street, leading to a broad-based decline in equities, particularly in auto and IT sector stocks. The market wrapped up the final trading session of FY25 on a weak note, weighed down by global trade concerns, profit-booking, and cautious positioning ahead of the new financial year.
The S&P BSE Sensex closed 191.51 points lower at 77,414.92, while the NSE Nifty50 fell 72.60 points, settling at 23,519.35. Throughout the session, the benchmarks struggled to hold on to gains as investors remained wary of global economic trends and the potential impact of the US tariff measures on India’s export-driven sectors.
Global and Domestic Factors Impacting the Market
Vinod Nair, Head of Research at Geojit Financial Services, stated that Asian markets have entered a phase of consolidation as investors assess the far-reaching consequences of US tariff policies on major manufacturing economies like China, Japan, and South Korea. Additionally, he highlighted that Japan's latest Consumer Price Index (CPI) data indicated an increase in inflation, which has further added to the prevailing weakness in equity markets.
"On the domestic front, the market’s upward trajectory has been halted by growing concerns over US trade restrictions, which could directly impact Indian auto, pharma, IT, and ancillary industries. Adding to the uncertainty, gold prices have hit a new high, reflecting investor fears that a deepening trade war could have long-term economic consequences globally," Nair said.
The latest US reciprocal tariffs, which are set to take effect on April 2, have amplified the selling pressure in IT and auto stocks. The financial sector, which has a significant weight in the indices, also contributed to the day’s decline.
Sectoral Performance and Broader Market Trends
Market analysts noted that sectoral trends were mixed, with FMCG stocks standing resilient, while IT, auto, and realty sectors faced substantial pressure. The broader indices also witnessed profit-booking, with mid-cap and small-cap indices shedding nearly 0.50% each as investors turned defensive in their approach.
Ajit Mishra, Senior Vice President, Research at Religare Broking Ltd, emphasized that investors are awaiting key global and domestic triggers before making aggressive bets. "Uncertainty surrounding the US tariff policy and its impact on global trade relations is limiting the market’s upside potential. In the current scenario, a stock-specific trading approach is advisable. We continue to favor banking and financial stocks while maintaining a selective stance in other sectors," he added.
Top Gainers and Losers
Despite the weak session, select blue-chip stocks managed to hold their ground. Among the top gainers, Kotak Mahindra Bank emerged as the best performer, rising 1.88%, driven by strong institutional buying. Hindustan Unilever (HUL) followed with a 1.01% gain, supported by defensive buying in FMCG stocks. ICICI Bank, a major player in the financial sector, climbed 0.87%, while Tata Motors and Nestlé India also ended the day on a positive note, gaining 0.82% and 0.75%, respectively.
On the losing side, IndusInd Bank suffered the sharpest decline, tumbling 3.57%, as profit-booking intensified in financial stocks. Mahindra & Mahindra (M&M), a key player in the auto sector, dropped 2.45%, reflecting concerns over the impact of US tariffs on India’s automobile exports. HCLTech declined 2.20%, while Maruti Suzuki and Infosys also faced selling pressure, losing 2.10% and 2.07%, respectively.
Market Outlook and Key Levels to Watch
Looking ahead, analysts believe that global trade policies, inflationary trends, and central bank actions will remain key factors shaping market sentiment. Investors will closely monitor corporate earnings in the upcoming quarter, GDP growth data, and any further developments in US-China trade relations.
From a technical perspective, Nifty faces immediate resistance near 23,650 levels, while strong support exists around 23,300. Any breach of these levels could dictate the market’s next significant move as it enters the early weeks of FY26.
In the near term, traders are advised to stay cautious, focus on defensive sectors like FMCG and banking, and avoid excessive risk-taking amid ongoing global uncertainties.
