On Wednesday, the stock market witnessed a halt to its impressive seven-day rally, with major equity indices closing in the negative territory. This downturn was primarily driven by profit-taking as investors reacted to ongoing uncertainties surrounding US tariff policies, which have kept the market on edge.
Market Performance Overview
The Sensex and Nifty indices began the day with a slight increase but quickly fell into a range-bound pattern. As the day progressed, select heavyweight stocks faced profit booking, pulling both indices lower. Ultimately, the Sensex ended at 77,288.50, reflecting a decline of 728.69 points or 0.93%. Meanwhile, the Nifty dipped by 181.80 points or 0.77%, closing at 23,486.85. Notably, both indices had enjoyed a nearly 6% surge over the previous week.
- Sensex: 77,288.50 (-728.69 points, -0.93%)
- Nifty: 23,486.85 (-181.80 points, -0.77%)
Broader Indices Decline
The broader market also faced challenges, with the BSE Midcap and BSE Smallcap indices falling by 0.67% and 1.45%, respectively. This follows previous losses on Tuesday of 1.13% and 1.63%.
Investor Concerns Over US Tariff Policies
“The ongoing uncertainty regarding US tariffs has created a cautious atmosphere among investors, particularly with President Donald Trump’s upcoming tariff announcements expected on April 2. These announcements could significantly impact Indian exports, especially in the IT and pharmaceutical sectors,” explained Vaibhav Vidwani, a Research Analyst at Bonanza Group.
Profit booking has been a key factor, as investors sought to secure gains following a robust week of market performance.
Ajit Mishra, Senior Vice President of Research at Religare Broking, noted, “Participants are opting to book profits in light of the nearing March derivatives contract expiry, compounded by concerns over tariff negotiations that are affecting market sentiment.”
Market Capitalization and Sector Performance
The overall market experienced a significant downturn, with 3,115 stocks declining compared to just 919 gainers. On Wednesday alone, investors saw a staggering loss of Rs 3.33 lakh crore in market capitalization, adding to a total loss of Rs 6.68 lakh crore over the past two trading sessions.
All sectoral indices on the BSE fell into the red, except for the capital goods sector. The oil & gas, real estate, healthcare, utilities, and energy sectors were among the hardest hit, experiencing declines of up to 1.52%.
Key Stock Movements
The top losers in the Sensex included major players such as NTPC, Zomato, Tech Mahindra, Bajaj Finance, and Axis Bank, with losses reaching as high as 3.54%.
“With global uncertainties looming and sectoral weaknesses emerging, investors are likely to remain vigilant in the upcoming sessions,” stated Sundar Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity. He emphasized the importance of the 23,500 support zone for the Nifty and the potential for renewed buying interest to reclaim higher levels.
Final Thoughts
As the market adapts to changing economic conditions, investors should keep an eye on both domestic and international developments. Staying informed and ready to react will be crucial in navigating the uncertainties ahead.
