The stock market faced a turbulent day on Wednesday, with 78 stocks hitting their 52-week lows. Notable names included Jai Corp Ltd, Orchid Pharma Ltd, and Welspun Specialty Solutions Ltd. Meanwhile, 57 stocks reached 52-week highs, among them InterGlobe Aviation (IndiGo) and Narayana Hrudayalaya Ltd. The domestic benchmarks, Nifty 50 and Sensex, both registered declines, reflecting a broader global market slump influenced by recent tariff announcements from the U.S.

Market Reaction to Tariff Announcements

The decline in the Nifty 50 was 0.61%, closing at 22,399.15, while the Sensex fell by 0.51%, ending at 73,847.15. The negative market sentiment was exacerbated by the new "reciprocal" tariffs imposed by U.S. President Donald Trump, which took effect earlier that day. Although the Reserve Bank of India (RBI) announced a 25 basis point interest rate cut to stimulate growth, it failed to uplift investor confidence in the face of global economic uncertainties.

• Nifty 50: Closed at 22,399.15 (-0.61%)
• Sensex: Closed at 73,847.15 (-0.51%)
• Tariffs: Implemented by U.S. President Donald Trump

Broader Market Trends

The decline extended to the wider market, with the BSE Midcap and Smallcap indices dropping by 0.73% and 1.08%, respectively. According to Vinod Nair, Head of Research at Geojit Investments, the renewed downturn in global financial markets is linked to rising U.S. bond yields and growing trade tensions. While the RBI’s rate cut is viewed positively, it has not significantly affected overall market sentiment amid looming recession fears.

Sector Insights

The IT sector is bracing for disappointing Q4 results, while the pharmaceutical industry is cautious due to potential challenges from U.S. tariffs. On a more positive note, sectors like FMCG are performing better, as they are not immediately threatened by the global economic slowdown.

Nifty 50 Forecast

Rupak De, Senior Technical Analyst at LKP Securities, indicates that the Nifty 50 is trading below the upper channel of a downward trend and the 21-day EMA, which signals short-term weakness. The index faces resistance near 22,500, and a bearish crossover in the RSI suggests ongoing negative momentum. Should the Nifty 50 fail to surpass 22,500, it could slide towards 22,000, while a breakout could propel it to the 22,750–22,800 range.

In summary, the stock market is navigating through a challenging landscape marked by global trade tensions and cautious domestic sentiments. Investors are advised to stay informed as the market continues to react to unfolding economic developments.