Trade war avalanche buries indices, Nifty below 22,910

Domestic equity benchmarks extended their losing streak for a second session, rattled by escalating global trade tensions. With the U.S. imposing aggressive tariffs under President Trump and potential retaliatory measures from China, the EU, and others on the horizon, market volatility remains high. Concerns over global trade and economic growth deepened, dragging the Nifty50 below 22,910, with metals, pharma, and IT stocks bearing the brunt of the selloff.

The S&P BSE Sensex tanked 930.67 points or 1.22% to 75,364.36. The Nifty 50 index dropped 345.65 points or 1.49% to 22,904.45. In the two consecutive sessions, the Sensex and Nifty dropped by 1.64% and 1.83%, respectively.

Tata Motors (down 6.15%), Larsen & Toubro (down 4.67%), Reliance Industries (down 3.52%) and Infosys (down 3%) were major drags.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index tumbled 3.08% and the S&P BSE Small-Cap index slumped 3.43%.

The market breadth was weak. On the BSE, 1126 shares rose and 2820 shares fell. A total of 130 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 1.13% to 13.76.

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.

Moreover, the HSBC India Composite PMI Output Index increased to a seven-month high of 59.5, from 58.8 in February, to signal another month of above-trend growth.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.18% to 6.576 as compared with previous close 6.480.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.3075, compared with its close of 85.5200 during the previous trading session.

MCX Gold futures for 5 May 2025 settlement fell 0.05% to Rs 89,720.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.55% to 102.10.

The United States 10-year bond yield tumbled 4.29% to 3.881.

In the commodities market, Brent crude for June 2025 settlement fell $4.28 or 6.10% to $65.86 a barrel.

Global Markets:

US Dow Jones index futures tumbled 1181 points, signaling a weak opening for Wall Street.

Shares in Europe and Asia 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.

Stocks in Spotlight:

The Nifty Metal index tumbled 6.56% to 8,414.45. The index tanked 7.33% in the two consecutive trading sessions.

Hindustan Copper (down 8.88%), National Aluminium Company (down 8.62%), Tata Steel (down 8.43%), Hindalco Industries (down 8.07%), NMDC (down 7.07%), Hindustan Zinc (down 7.05%), Jindal Stainless (down 6.86%), Lloyds Metals and Energy (down 6.27%), Jindal Steel & Power (down 5.88%), Steel Authority of India (down 5.01%), Welspun Corp (down 4.53%), JSW Steel (down 3.42%), Adani Enterprises (down 3.09%), APL Apollo Tubes (down 3.05%) slumped.

Vedanta tumbled 8.42%. The company announced that total aluminum production advanced 1% to 603,000 tonnes in Q4 FY25 as compared with 598,000 tonnes in Q4 FY24.

Pharmaceutical stocks took a sharp hit today after U.S. President Donald Trump issued a fresh warning about potential tariffs on the sector. The Nifty Pharma index plunged 4.03% to 20,560, reversing its 2.25% gain in the previous session when the industry was initially exempted from tariff levies under Trump's reciprocal tariffs policy.

Laurus Labs (down 7.21%), Granules India (down 6.87%), IPCA Laboratories (down 6.01%), Aurobindo Pharma (down 6%) and Lupin (down 6%) slumped.

Speaking to the media, Trump signaled a tough stance on the pharmaceutical industry. Pharma tariffs are going to come in at levels you haven't really seen before. We are looking at pharmaceuticals as a separate category. We will be announcing that sometime in the near future, and not too distant future. It's under review right now, he stated.

Mazagon Dock Shipbuilders dropped 7.10% to Rs 2541.20 after the Government of India announced its proposal to sell 4.83% stake in the company through an offer for sale (OFS) at a floor price of Rs 2,525 per share. Through OFS, Government of India proposes to sell up to 1,14,10,366 equity shares, representing a 2.83% stake, with an option to sell additional 2% stake or 80,67,600 equity shares in case of over subscription. The Government of India held 84.83% stake in Mazagon Dock Shipbuilders as of 31st December 2024.

HDFC Bank added 1.30% after the bank's average deposits stood at Rs 25,27,900 crore as of 31st March 2025, registering the growth of around 15.8% as compared with Rs 21,83,600 crore as of 31st March 2024.

L&T Finance declined 0.19%. 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 1.43% 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 tanked 7.17%. 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 2.20%. 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.

Housing & Urban Development Corporation (HUDCO) declined 2.88%. The company said that its board has approved a borrowing programme of up to Rs 65,000 crore for the financial year 2025-2026, depending upon actual funds requirements.

Emcure Pharmaceuticals slipped 4.13%. The company said that its European subsidiary Tillomed Laboratories has entered into an asset purchase agreement (APA) with UK based Manx Healthcare.

Jammu & Kashmir Bank fell 2.96%. The bank said that its gross advances jumped 11.32% to Rs 1,06,986.16 crore as of 31st March 2025, compared with Rs 96,981.86 crore as of 31st March 2024.

Indian Energy Exchange (IEX) shed 1.87%. The company said that it has achieved highest ever quarterly electricity traded volume of 31,747 million units (MU), marking a year-on-year increase of 18%.

Premier Energies fell 1.57%. The company announced that it has incorporated a wholly owned subsidiary in the name of Premier-Green Aluminium (PGAPL).

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