The final trading session of FY25 saw Dalal Street closing in the red, as both Sensex and Nifty ended lower on Friday, dragged down by a broad-based selloff, with auto and IT stocks leading the decline. Investor sentiment took a hit amid rising concerns over fresh US tariffs, which have cast uncertainty over global trade and weighed on equity markets worldwide. The day’s losses were also compounded by weak cues from Asian markets, which remained under pressure due to various macroeconomic factors, including inflationary trends and currency fluctuations.
The benchmark S&P BSE Sensex declined by 191.51 points, settling at 77,414.92, while the broader NSE Nifty50 fell by 72.60 points to close at 23,519.35. Both indices witnessed choppy trading throughout the session, with some attempts at recovery failing to gain traction as selling pressure intensified in key sectors.
According to Vinod Nair, Head of Research at Geojit Financial Services, markets across Asia are currently undergoing a phase of consolidation as investors assess the long-term implications of the latest US trade measures. He explained that the impact of the tariffs on manufacturing economies such as China, Japan, and India is a key factor driving market weakness. Adding to this, Japan's Consumer Price Index (CPI) has registered an increase, raising fresh concerns about inflation and potential monetary tightening. Domestically, he noted that the markets have slowed down after a strong rally in previous sessions, as investors take a cautious approach to the evolving trade war scenario. Additionally, gold prices hit a record high, reflecting a flight to safety as investors brace for potential disruptions in global trade.
The pressure on IT and auto stocks was particularly evident, as concerns over the US reciprocal tariffs, set to be enforced from April 2, rattled investor confidence. IT giants, which have significant revenue exposure from global markets, saw substantial declines, while auto stocks, particularly those reliant on exports, faced sharp selling pressure. Market experts believe that these sectors could face prolonged volatility as trade negotiations unfold in the coming weeks.
Despite the overall bearish sentiment, select banking, FMCG, and energy stocks managed to buck the trend and trade in positive territory, helping limit the extent of losses. However, market breadth remained negative, with most stocks in the red, and sectoral indices reflecting broad-based weakness.
Top Gainers and Losers on BSE
Gainers
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Kotak Bank: Gained 1.88%, emerging as the top performer, supported by strong institutional buying.
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Hindustan Unilever: Rose 1.01%, showing resilience amid the broader market downturn.
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ICICI Bank: Increased by 0.87%, maintaining upward momentum despite the selling pressure in other sectors.
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Tata Motors: Moved up 0.82%, benefiting from late-session buying interest.
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Nestle India: Added 0.75%, contributing to defensive plays amid market uncertainty.
Losers
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IndusInd Bank: Declined 3.57%, making it the worst performer of the session as selling pressure mounted in the financial sector.
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M&M: Dropped 2.45%, weighed down by tariff concerns and weak auto sector performance.
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HCLTech: Fell 2.20%, mirroring the broader weakness in the IT sector.
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Maruti Suzuki: Lost 2.10%, struggling as auto stocks faced heavy selling pressure.
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Infosys: Declined 2.07%, extending its losing streak as IT stocks underperformed.
Top Gainers and Losers on NSE
Gainers
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Tata Consumer Products Limited: Surged 2.91%, leading the gainers on NSE, supported by strong demand in the FMCG space.
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Kotak Bank: Rose 2.13%, driven by positive investor sentiment amid hopes of stability in banking stocks.
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Apollo Hospitals: Climbed 1.88%, reflecting strength in the healthcare sector.
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ONGC: Increased 1.79%, benefiting from a surge in crude oil prices.
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ICICI Bank: Moved up 0.85%, continuing its positive trajectory.
Losers
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IndusInd Bank: Fell 3.64%, emerging as the worst performer on NSE as banking stocks faced selling pressure.
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Wipro: Declined 3.56%, extending IT sector losses amid concerns over global demand.
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Shriram Finance: Dropped 3.28%, struggling due to weak market sentiment.
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Cipla: Lost 2.83%, underperforming in the pharma sector despite broader defensive plays.
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M&M: Fell 2.63%, continuing its downward trajectory due to trade concerns.
Broader Market Performance and Sectoral Trends
The broader markets also reflected weakness, with the BSE Midcap and Smallcap indices closing in the red, underperforming the benchmarks. Most sectoral indices ended lower, with Nifty IT, Nifty Auto, and Nifty Metal leading the declines. The Nifty Bank index saw mixed performance, with private sector lenders showing some resilience while PSU banks remained under pressure.
Global Market Cues and Investor Sentiment
Globally, markets remained on edge as investors grappled with the impact of fresh US tariffs and rising inflationary concerns. Asian markets traded lower, with key indices in Japan, China, and South Korea witnessing declines. European markets also opened weak, tracking losses from Asia and the US. The US market had ended on a negative note in the previous session, as investors digested the implications of the new trade restrictions and their potential impact on corporate earnings.
In neighboring countries, the impact of the selloff was also felt. Thailand, which has close economic ties with China, saw a sharp decline in its stock market as worries over disruptions to supply chains deepened. In Japan, the yen weakened further, adding to inflation concerns, while Chinese markets struggled due to persistent property sector woes and regulatory uncertainty.
Outlook for the Coming Sessions
As markets transition into the new fiscal year, investors will closely monitor global trade developments, economic data releases, and corporate earnings to gauge market direction. The upcoming RBI policy meeting, expected in early April, will also be a key event for domestic investors, as any changes in interest rates or policy stance could impact market dynamics.
Analysts believe that while short-term volatility may persist due to global uncertainties, the long-term growth outlook for Indian markets remains strong, supported by robust economic fundamentals, strong corporate earnings, and government policy initiatives.
With investor sentiment remaining cautious, experts advise adopting a sector-specific approach, focusing on defensive sectors such as FMCG, healthcare, and banking, while keeping an eye on developments in IT and auto stocks.
As we enter FY26, the key focus will be on how markets navigate global trade tensions, inflationary pressures, and economic growth trends in the coming months.
