Sensex Plummets 322 Points, Nifty At 23,250 As Trump Announces Reciprocal Tariffs

Despite the drop in major indices, the broader market outperformed, with the Nifty Midcap 100 and Smallcap 100 indices rising nearly 0.5 per cent, defying the overall selloff

By : ABP Live Business | Updated at : 03 Apr 2025 04:25 PM (IST)

The Nifty IT index slumped 4 per cent intraday, topping the losses among sectoral indices as investors reacted to US President Donald Trump’s tariff announcement
Source : ABPLIVE AI

Indian benchmark indices, Sensex and Nifty, fell on Thursday, pressured by a sharp selloff in IT, auto, metal, and oil & gas sectors following the US’s 27 per cent reciprocal tariff on India. However, gains in banking, pharma, and broader markets helped cushion the decline.  The Sensex ended 322.08 points or 0.42 per cent lower at 76,295.36, while the Nifty dropped 82.25 points or 0.35 per cent to 23,250.10. Market breadth was positive, with 2,463 stocks advancing, 1,033 declining, and 102 unchanged. 

Broader Market Update

Despite the drop in major indices, the broader market outperformed, with the Nifty Midcap 100 and Smallcap 100 indices rising nearly 0.5 per cent, defying the overall selloff.

The Nifty IT index slumped 4 per cent intraday, topping the losses among sectoral indices as investors reacted to US President Donald Trump’s tariff announcement. Major IT firms like Infosys, TCS, and HCL Technologies were among the biggest decliners, with analysts projecting a near-term revenue impact. Pharmaceutical stocks stood out as winners after the White House announced exemptions for pharma products from the tariff increases. The Nifty Pharma index jumped by up to 3 per cent, with IPCA Labs, Sun Pharma, and Lupin driving the rally, each gaining as much as 5 per cent.

Additionally, textile stocks showed strong gains, outperforming the broader market. Despite the US being a major market for Indian textiles and apparel, the new tariffs are expected to boost competitiveness, giving Indian exporters an edge over their Asian counterparts.

Also Read: What Is A Reciprocal Tariff? Here's How It Affects The Trade Relations Between Countries

Expert Comments

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, "The exemption for Indian pharmaceutical exports is a positive development. Even in a weak market, domestic consumption-driven sectors will be viewed as safe havens by investors."

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates, noted, "Indian equity markets opened with a gap down on Thursday after Trump announced a 27 per cent discounted reciprocal tariff on India. After opening lower, Nifty found support, witnessed a mild recovery, and ultimately settled the day on a negative note at 23,250. The broader market outperformed Nifty, as the Nifty Midcap 100 and Nifty Smallcap 100 indices settled positively around 0.21 per cent and 0.58 per cent, respectively. Meanwhile, the volatility index, India VIX, cooled off by 0.89 per cent to 13.60, indicating a drop in market volatility."

Published at : 03 Apr 2025 04:21 PM (IST)
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Sensex BSE Stock Market Today NSE Nifty BSE.

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