On April 7, 2024, the Indian stock market experienced a significant downturn, marking its most substantial single-day decline in ten months. The benchmark Sensex plummeted by 2,227 points, or 2.95%, closing at 73,137.90. This sell-off was largely driven by mounting concerns over the economic implications of the escalating global trade war instigated by U.S. President Donald Trump’s tariff policies. Similarly, the Nifty 50 index fell by 742.85 points, or 3.24%, ending at 22,161.60.
Market Overview: A Day of Losses
- BSE Midcap and Smallcap indices also reflected the market’s woes, declining by 3.46% and 4.13%, respectively.
- The overall market capitalization of BSE-listed firms shrank dramatically, dropping to ₹389 lakh crore from over ₹403 lakh crore, resulting in a staggering loss of ₹14 lakh crore for investors in just one trading session.
What Triggered the Market Downturn?
The downturn in the Indian stock market was in line with trends observed across global markets, where fears of a trade war ignited widespread selling. According to Vinod Nair, head of research at Geojit Investments, the market’s reaction stemmed from worries about high U.S. tariffs and retaliatory measures from other countries. Nair noted, “While the overall impact on India may be less severe than on other nations, investors should remain cautious during these turbulent times. It would be wise to focus on domestic themes that could rebound once the situation stabilizes.”
Key Players in the Nifty 50
In a sea of red on the Nifty 50 index, only two stocks managed to finish on a positive note:
- Hindustan Unilever: Up 0.24%
- Zomato: Up 0.22%
Conversely, several major losers included:
- Trent: Down 14.70%
- JSW Steel: Down 7.53%
- Tata Steel: Down 7.26%
Sector Performance
The day’s market turmoil was evident across various sectors:
- Nifty Metal: Down 6.75% (the largest sectoral loss)
- Nifty Realty: Down 5.69%
- Other sectors like Media, Auto, and Financials also faced significant declines, with the Nifty Bank dropping 3.19% and the Financial Services index falling 3.49%.
Trading Activity Highlights
- Vodafone Idea topped the volume charts with 68.35 crore shares traded, followed by YES Bank and Tata Steel.
- A staggering 775 stocks hit their 52-week lows, including major players like TCS and Reliance Industries.
Analyzing the Decline
The advance-decline ratio showcased the extent of the market’s struggles, with 2,640 stocks declining compared to just 327 that advanced. Moreover, 384 stocks hit their lower price bands during the session.
Future Outlook for Nifty 50
Experts suggest monitoring critical support levels for the Nifty 50. Ajit Mishra, Senior Vice President of Research at Religare Broking, indicated that a decisive close below 21,700 could signal further declines, potentially targeting 21,300. Conversely, any recovery attempts may encounter resistance around the 22,500–22,800 range. Rupak De, a Senior Technical Analyst at LKP Securities, echoed this sentiment, identifying resistance levels at 22,350 and 22,550, while noting support at 21,900.
For more insights on market trends, stay tuned for the latest updates.
