Nifty trades below 22,950; European mkt decline

The key domestic indices traded with significant losses in the afternoon 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 below the 22,950 mark.

All the other sectoral indices on the NSE were traded in red while metal, pharma and realty shares declining the most.

At 13:28 IST, the barometer index, the S&P BSE Sensex, tanked 787.85 points or 1.03% to 75,507.51. The Nifty 50 index dropped 302.25 points or 1.30% to 22,948.60.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 2.93% and the S&P BSE Small-Cap index slumped 3.15%.

The market breadth was weak. On the BSE, 1,024 shares rose and 2,798 shares fell. A total of 143 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.

Gainers & Losers:

Bajaj Finance (up 2.08%), Tata Consumer Products (up 1.81%), HDFC Bank (up 1.40%), Axis Bank (up 0.74%), and Shriram Finance (up 0.47%) were the major Nifty gainers.

Tata Steel (down 7.62%), Hindalco Industries (down 6.85%), Oil & Natural Gas Corporation (down 6.60%), Tata Motors (down 5.91%) and Cipla (down 5.27%) were the major Nifty losers.

Stocks in Spotlight:

Union Bank of India tumbled 6.17% after the bank missed its loan growth and deposit guidance for the financial year 2025.

The bank's management had previously guided a deposit growth range of 9% to 11% and a loan growth target of 11% to 13% for FY25. However, the bank fell short of these projections.

Mazagon Dock Shipbuilders dropped 6.48% after the Government of India announced its proposal to sell a 4.83% stake in the company through an offer for sale (OFS) at a floor price of Rs 2,525 per share.

L&T Finance declined 1.10% 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.

Bajaj Finance advanced 2.10% after the company reported a 36% increase in new loans booked during Q4 FY24 to 10.70 million as compared to 7.87 million in Q4 FY24.

Angel One declined 5.96%. The firm announced that its client base surged 39.5% to 31.02 million in March 2025 as compared with 22.24 million in March 2024.

Bandhan Bank fell 2.39%. The bank's total deposits rose by 11.8% to Rs 151,209 crore in the quarter ended 31 March 2025, compared to Rs 135,202 crore recorded in the quarter ended 31 March 2024.

Global Markets:

US Dow Jones index futures slipped 232 points, signaling a weak opening for Wall Street.

European shares tumbled while Asian stocks declined 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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