The Indian stock market ended Thursday, April 3, 2025, on a mixed note, as global macro concerns weighed heavy on sentiment. The Sensex dropped 322.08 points to close at 76,295.36, while the Nifty 50 declined by 82.25 points to settle at 23,250.10. The broader market faced selling pressure amid fresh concerns over global trade following tariff announcements by the United States, particularly hitting tech and export-oriented sectors.
While frontline indices remained in the red, Nifty Bank emerged strong, gaining 0.49% to close at 51,597.35, thanks to sustained buying in financials. However, it was the sectoral divergence that truly defined today’s trade.
Key Indices Performance – April 03, 2025
| Index | Closing Price | Change | % Change |
|---|---|---|---|
| Sensex | 76,295.36 | -322.08 | -0.42% |
| Nifty 50 | 23,250.10 | -82.25 | -0.35% |
| Nifty Bank | 51,597.35 | +249.30 | +0.49% |
Tariff Fears Take Centerstage
The major drag on market sentiment came from U.S. President Donald Trump’s announcement of sweeping new tariffs, reigniting trade war fears globally. The move triggered a sell-off in technology and export-linked stocks, while certain defensives like pharma and FMCG remained relatively immune.
The market absorbed the ripple effects of rising global uncertainty, with cautious institutional flows and defensive positioning.
Sectoral Snapshot: IT Cracks, Pharma Shines
| Sector | Index Value | Change | % Change |
|---|---|---|---|
| Nifty IT | 34,757.30 | -1,526.20 | -4.21% |
| Nifty Pharma | 21,423.50 | +470.65 | +2.25% |
Worst Performing Sector: Nifty IT (-4.21%)
Technology stocks bore the brunt of the tariff tremors. TCS emerged as the biggest loser of the day, sliding 3.97% to close at ₹3,403.15. The IT pack faced sharp selling as investors feared a slowdown in global tech spending and project delays from overseas clients, particularly in the U.S.
Infosys, HCLTech, Wipro, and Tech Mahindra all ended lower by over 2-3% each. The Street remains cautious about margin compression and revenue impact due to policy uncertainty in the U.S., a key market for Indian IT.
Best Performing Sector: Nifty Pharma (+2.25%)
Pharma stocks outshined the broader market. The sector rallied after reports confirmed that U.S. tariffs would not apply to pharmaceutical imports, offering relief to Indian drug exporters.
Investors rotated funds into defensive names. Sun Pharma, Dr. Reddy’s, Divi’s Labs, and Cipla all closed with solid gains. Analysts expect the pharma sector to continue benefiting from a steady demand outlook and insulation from immediate macro risks.
Top Gainers and Losers – April 03, 2025
| Stock | Price (₹) | Change (₹) | % Change |
|---|---|---|---|
| Top Gainer | |||
| Power Grid Corp | 299.10 | +12.35 | +4.31% |
| Top Loser | |||
| TCS | 3,403.15 | -140.80 | -3.97% |
Power Grid Corp surged on expectations of a stronger capex cycle in power infrastructure and steady cash flow outlook. The stock attracted institutional buying as a safe bet amid volatility.
Meanwhile, TCS led the declines, impacted by tech rout fears. High institutional ownership and heavy index weightage worsened the fall.
Stock in Focus: Tejas Networks (+9%)
Tejas Networks grabbed headlines after its shares soared 9%. Reports of a ₹61,000 crore 5G expansion plan by BSNL lifted investor sentiment. Tejas, a major 4G/5G RAN equipment and router supplier, stands to benefit significantly from this rollout.
The market anticipates large-scale domestic orders to flow into the telecom equipment ecosystem, boosting the Make-in-India theme. Traders accumulated the stock on hopes of long-term revenue visibility.
Sectoral Pressure: Metals and Exporters Fall
Metal stocks came under fire, led by names like Vedanta, Hindalco, and JSW Steel. President Trump’s tariff move sparked concerns over global demand for industrial metals and the threat of dumping in India.
With India already facing a demand slowdown and rising input costs, any global price distortion could hurt domestic profitability. Traders booked profits in metal counters after a solid rally in Q1.
Mid & Smallcap Action: Volatility Persists
Broader markets remained volatile. The Nifty Midcap 100 and Nifty Smallcap 100 underperformed slightly but saw stock-specific movements.
Sonata Software hit a 52-week low, ending at ₹342.25 on the BSE. The stock remained under pressure after muted Q4 guidance and soft commentary from management. Concerns about weak U.S. client budgets and overall margin compression weighed on the counter.
In contrast, Heritage Foods witnessed fresh buying. Strategic investments in value-added products and a push toward ice cream segment expansion led to improved growth visibility. The company now aims for a 7-8% EBITDA margin in FY26, with a 20% sales growth target in the ice cream vertical.
Fund Watch: WhiteOak Capital Plans GIFT City Category-III Fund
In fund management news, WhiteOak Capital announced the launch of a Category-III AIF at GIFT City, Gujarat. The fund will allow investors to participate via LRS (Liberalized Remittance Scheme) or Overseas Payment Instrument (OPI). This development reflects the rising prominence of GIFT City as India’s offshore financial hub and growing investor interest in structured alternatives.
Global Cues: Uncertainty Lingers
Global markets mirrored India’s cautious stance. Asian indices traded mixed, while European markets opened flat. Investors remain wary of policy unpredictability after Trump’s tariff shock. Bond yields inched higher, and gold prices firmed up, reflecting a flight to safety.
Wall Street futures pointed to a muted start, with tech stocks likely to stay under pressure. The dollar index gained, indicating a risk-off trade globally.
Technical View: Key Levels to Watch
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Nifty 50 closed at 23,250.10, holding above the immediate support zone of 23,200. Resistance now lies near 23,500.
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Sensex faces resistance at 76,800 and support at 75,850.
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Technical analysts advise caution, as the Nifty formed a bearish candle on the daily chart with high volumes.
If Nifty breaks below 23,200 decisively, it could test 22,900 in the near term. However, buying on dips remains a preferred strategy for long-term investors.
Outlook for April 4, 2025
Markets may remain volatile ahead of the U.S. jobless claims data and any new developments on the tariff front. Investors should track:
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Updates on U.S.-China trade negotiations
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U.S. job market data
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FII/DII flows and sectoral rotation trends
Sectors like pharma, banking, and infrastructure may attract attention, while traders might avoid high-beta IT and metal names till clarity emerges.
Conclusion
April 3 closed with a clear message — global macro risks have returned to the forefront. While headline indices managed to contain losses, sharp divergence across sectors signals a stock-picker’s market ahead. Defensive plays like pharma and power utilities gained favor, while IT and metal stocks faced rejection.
As volatility picks up, investors should stay selective, maintain discipline, and look for value in sectors with strong earnings visibility and regulatory tailwinds. The market will continue to react swiftly to any macro headline, and agility remains key in navigating the evolving landscape.
