Market Commentary - Mid-Session
The key equity benchmarks continued to trade with major losses in the mid-morning trade, tracking a massive sell-off in U.S. markets triggered by U.S. President Donald Trump's reciprocal tariff announcement, which heightened concerns about a potential recession. The Nifty traded near the 23,000 level. Metal shares extended losses for the second consecutive trading sessions.
At 11:30 IST, the barometer index, the S&P BSE Sensex, tanked 636.45 points or 0.84% to 75,656.41. The Nifty 50 index slipped 244.30 points or 1.05% to 23,004.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index slumped 3.41% and the S&P BSE Small-Cap index declined 2.57%.
The market breadth was weak. On the BSE, 956 shares rose and 2,675 shares fell. A total of 159 shares were unchanged.
Economy:
The HSBC final India Services Purchasing Managers' Index, compiled by S&P Global, fell to 58.5 last month from 59.0 in February, but was higher than a preliminary estimate that showed a fall to 57.7. However, it remained comfortably ahead of the 50-mark separating contraction from growth.
The HSBC India Composite PMI, which included robust manufacturing growth, rose to a seven-month high of 59.5 in March from February's 58.8, reflecting stronger overall private sector growth. Manufacturing growth outpaced services, but both sectors saw moderating employment growth and business confidence.
Pranjul Bhandari, Chief India Economist at HSBC, said: India recorded a 58.5 services PMI in March 2025, softening slightly from the month prior. Domestic and international demand remained fairly buoyant, despite being sequentially a tick lower than the month before. Meanwhile, job creation and charge inflation both cooled during March. Looking ahead, business sentiment remains generally positive, but intensifying competition presents a significant challenge to many survey participants.
Buzzing Index:
The Nifty Metal index slumped 4.71% to 8,581.10. The index tanked 7.33% in the two consecutive trading sessions.
Vedanta (down 6.28%), National Aluminium Company (down 5.77%), Hindustan Copper (down 5.7%), Hindalco Industries (down 5.52%), Tata Steel (down 4.97%), NMDC (down 4.87%), Welspun Corp (down 4.63%), Hindustan Zinc (down 4.54%), Lloyds Metals & Energy (down 3.99%) and Jindal Stainless (down 3.8%) declined.
Stocks in Spotlight:
Bajaj Finance advanced 2.19% after the company reported 36% increase in new loans booked during Q4 FY24 to 10.70 million as compared to 7.87 million in Q4 FY24.
Angel One tanked 5.43%. The company announced that its client base surged 39.5% to 31.02 million in March 2025 as compared with 22.24 million in March 2024.
Trishakti Industries fell 2.24%. The company announced that it has secured an order worth Rs 6 crore from NCC for the supply of advanced earth-moving heavy equipment for NCC's ongoing project.
L&T Finance declined 1.14% after the firm announced that its retail disbursements for Q4 FY25 were Rs 14,870 crore, registering a degrowth of 1.16% compared to Rs 14,531 crore recorded in Q4 FY24.
Global Markets:
US Dow Jones index futures slipped 186 points, signaling a weak opening for Wall Street.
Asian markets tumbled on Friday, mirroring the steep declines in U.S. equities overnight after the announcement of new U.S. tariffs. Markets in Hong Kong and China were closed in observance of the Qingming Festival.
On Wednesday, U.S. President Donald Trump introduced a new tariff policy applying reciprocal rates to over 180 countries and territories. The move has heightened concerns of a potential global trade conflict, prompting a broad-based sell-off in equities.
Overnight in the U.S., the three major averages plummeted. The S&P 500 slid back into correction territory, dropping 4.84% to 5,396.52. The Dow Jones Industrial Average tumbled 1,679.39 points, or 3.98%, to close at 40,545.93 and the Nasdaq Composite fell 5.97% to end at 16,550.61, logging its biggest decline since March 2020.
Apple Inc. shares declined more than 9% amid investor concerns over the impact of the new 54% tariff on Chinese imports. As Apple relies heavily on Chinese manufacturing and global supply chains, the tariffs are expected to increase production costs, potentially pressuring profit margins or leading to higher consumer prices.
Retailers were also hit hard, with Nike Inc stock falling more than 14%. Meanwhile, plane maker Boeing Co shares declined 11%. Tesla Inc shares closed 5.5% lower, while NVIDIA Corporation lost 8%.
Investors are now focused on the upcoming U.S. payrolls report and a speech from Federal Reserve Chair Jerome Powell for further insight into the labor market and potential implications for monetary policy.
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