Sensex and Nifty Slide Over 1% Amid Tariff Uncertainty and IT Sector Pressure

Indian equity markets faced intensified selling pressure on April 1, especially during the afternoon session, as concerns about potential reciprocal tariffs triggered investor caution. The BSE Sensex fell by 1,133 points or 1.46%, closing at 76,281. Similarly, the NSE Nifty dropped 283 points or 1.20% to settle at 23,236.

The decline was led primarily by heavy losses in IT and financial stocks. Despite the downturn, market breadth remained positive, with 2,281 stocks advancing compared to 1,071 declining.

Broader Market Follows Downtrend

The broader market, which initially showed signs of resilience, also slipped into negative territory. The Nifty Midcap 100 index fell by 0.9%, while the Nifty Smallcap 100 index dipped 0.1% during intra-day trading.

Analysts Cautious Amid Global Tariff Risks

According to analysts at JM Financial, anticipated tariff measures from U.S. President Donald Trump could induce further corrections in Indian markets. They emphasized that while large-cap valuations have largely normalized, mid and small caps still remain vulnerable due to higher valuations and limited buffer against earnings disappointments.

Market Outlook: Sideways with Downward Bias

Technically, markets may trade sideways unless the Nifty crosses the 23,700–23,750 resistance zone. Anand James from Geojit Investments stated, “Failure to cross that zone may keep the market biased toward a drop to 23,300.”

IT and Realty Sectors Hit Hard

The Nifty IT index suffered the most, led by sharp declines in TCS, Infosys, HCL Technologies, and Wipro. The Nifty Realty index also dropped 2%, impacted by weakness in DLF, Macrotech Developers, Godrej Properties, and Phoenix Mills.

Stock Highlights: HAL Surges, Vodafone Idea Hits Upper Circuit

Hindustan Aeronautics: Shares jumped 8% following new defence orders worth ₹62,700 crore from the Ministry of Defence. The contracts cover Light Combat Helicopter deliveries to the Indian Army.

Vodafone Idea: The stock hit the 10% upper circuit after the government announced plans to raise its stake from 22.6% to 48.99% by converting ₹36,950 crore worth of spectrum dues into equity. This move will make the government the largest shareholder in the telecom company.

Read More: Japan Urges Tariff Relief Amid Market Turmoil and Rising Trade Tensions with US