Market sell-off continues; European mkt decline

The key equity indices continued to witness selling pressure in mid-afternoon trade, mirroring a global market rout driven by escalating trade tensions and mounting recession fears in the United States. The Nifty hovered below the 21,900 level.

All the sectoral indices on the NSE were traded in red, with metal, realty and and media shares leading the fall.

At 13:25 IST, the barometer index, the S&P BSE Sensex, slumped 3,193.90 points or 4.24% to 72,181.59. The Nifty 50 index tanked 1,025.05 points or 4.48% to 21,879.40.

In the broader market, the S&P BSE Mid-Cap index dropped 4.54% and the S&P BSE Small-Cap index tumbled 5.73%.

Sellers outnumbered buyers. On the BSE, 354 shares rose and 3,629 shares fell. A total of 148 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 64.53% to 22.61.

Economy:

India's foreign exchange (forex) reserves jumped $6.596 billion to $665.396 billion during the week ended March 28, according to the latest data from the RBI.

For the week ended March 28, foreign currency assets, a major component of the reserves, increased by $6.158 billion to $565.014 billion, the RBI data released on Friday showed.

Gold reserves increased by $519 million to $77.793 billion during the week ended March 28. The special drawing rights (SDRs) were down by $65 million to $18.176 billion, the RBI said.

India's reserve position with the IMF was also down by $16 million at $4.413 billion in the reporting week, the apex bank data showed.

Gainers & Losers:

None of the Nifty50 stocks recorded gains as the index traded firmly in negative territory.

Trent (down 15.42%), JSW Steel (down 9.37%), Tata Steel (down 9.35%), Shirram Finance (down 8.72%) and Tata Motors (down 7.86%) were the major Nifty50 losers.

Tata Motors plunged 7.86% after the media reported that Jaguar Land Rover (JLR), its UK-based subsidiary, will temporarily suspend vehicle exports to the U.S. starting April 7. Meanwhile, the company said that Jaguar Land Rover's wholesales for Q4 FY25 were 111,413 units, up 1.1% as compared with Q4 FY24.

Trent tumbled 15.42%. The Tata Group-backed brand posted Q4FY25 revenue of Rs 4,334 crore, up 28% year-on-year (YoY). This growth is lower than its five-year compound annual growth rate (CAGR) of 36%. It is also behind Trent's 39% annual revenue growth in FY25 at Rs 17,624 crore. Meanwhile, a foreign brokerage cut its target price for Trent from Rs 7,500 to Rs 6,760, citing slower sales growth and a sharper-than-usual seasonal decline.

Stocks in Spotlight:

Kalyan Jewellers India declined 3.86%. The company said that it has recorded a consolidated revenue growth of approximately 37% in the recently concluded quarter as compared to the same period in the previous financial year, despite extreme volatility in gold prices.

Federal Bank fell 3.39% after the bank's executive director (ED) Shalini Warrier, submitted her resignation on Friday to pursue an entrepreneurial opportunity.

Utkarsh Small Finance Bank slipped 4.29%. The company has reported a 7.47% rise in gross loan portfolio to Rs 19,666 crore as on 31 March 2025, compared with Rs 18,299 crore as on 31 March 2024.

FSN E-Commerce Ventures (Nykaa) dropped 2.77%. The company said that it witnessed a continued growth momentum in Q4 FY2025 with consolidated net revenue growth expected to be in low to mid twenties YoY.

Jubilant FoodWorks fell 4.24%. The company's consolidated revenue from operations was at Rs 2,107 crore in Q4 FY25, jumped 33.9% year-on-year. The firm added that Domino's India like-for-like ('LFL') growth came in at 12.1%, while Domino's Turkey LFL growth (post-IAS-29) came in at 0.9%.

Macrotech Developers declined 5.75%. The company said that it has achieved pre-sales of Rs 4,810 crore in Q4 FY25, which is higher by 14% as compared with the pre-sales of Rs 4,230 crore posted in Q4 FY24.

Global Markets:

Dow Jones futures cratered by a jaw-dropping 1,606 points, setting the tone for what could be a turbulent day on the trading floor.

European market declined sharply, deepening a global market rout that kicked off last week following the latest announcements of U.S. President Donald Trump's tariffs regime.

Most Asian market also registered significant losses following China's retaliatory tariffs in response to recent U.S. trade measures, deepening concerns about a prolonged trade conflict between the world's two largest economies.

Last week, President Donald Trump announced a 10% universal import tariff effective April 5. Additional tariffs targeting key trade partners, including China, Vietnam, Japan, and the European Union, are scheduled to take effect on April 9.

In retaliation, China imposed a 34% tariff on a range of American goods, marking a sharp escalation in trade tensions. The European Union, meanwhile, is seeking alignment among its member states to craft a coordinated response, potentially involving further countermeasures.

The escalating trade conflict has raised fears of a global trade war, with potential ramifications for international supply chains, inflation, and economic growth.

In Japan, the Nikkei 225 index fell as much as 9% on Monday, reaching its lowest level since early November 2023. Japan's export-driven economy, particularly in sectors such as automotive, technology, and manufacturing, is considered especially vulnerable to rising U.S. tariffs.

On Friday, U.S. markets had already reacted negatively to the trade developments. The Dow Jones Industrial Average declined 5.50%, marking its steepest drop in over three years. The S&P 500 fell 5.97%, and the Nasdaq Composite dropped 5.82%, with all three indices closing at six-month lows.

Despite mounting concerns, Treasury Secretary Scott Bessent downplayed fears of an imminent recession in a media interview. Federal Reserve Chairman Jerome Powell also emphasized that there is no immediate need for a change in interest rates. He noted that the administration's trade policies could simultaneously push inflation higher while slowing economic growth.

Meanwhile, March's nonfarm payrolls data provided a positive signal, coming in at 228,000 jobs added ' a notable increase from February's revised figure of 117,000.

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