The Indian stock market experienced a significant downturn on Friday, ignited by Donald Trump’s tariffs announcement, reminiscent of the infamous Black Monday of 1987. The Nifty 50 index plummeted by 345 points to settle at 22,904, while the BSE Sensex dropped a staggering 930 points, closing at 75,364. The Bank Nifty index also faced a decline, finishing at 51,502, down by 94 points. This sharp decline saw the BSE Small-cap index fall by 3.43%, with the Mid-cap index not far behind at 3.08%.
Market Overview and Sector Performance
The broader market reflected a clear trend of declining stocks, as indicated by the BSE advance-decline ratio of 0.40. Almost all sectors closed in the red, with the exception of the Nifty FMCG index. The Metal, Pharma, Oil & Gas, Realty, and IT sectors were particularly hard-hit, showcasing the widespread impact of the sell-off.
Expert Insights on Market Trends
Looking ahead, Siddhartha Khemka, Head of Research at Motilal Oswal, shared his perspective on the current market dynamics. He noted the importance of the upcoming RBI monetary policy announcement scheduled for April 9 and the anticipated Q4FY25 corporate earnings beginning with TCS results on April 10. Khemka anticipates continued volatility, driven by sector-specific developments and global market influences.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, provided a cautious outlook on the Nifty 50. He indicated that the index’s short-term trend appears weak, suggesting that if it falls below 22,800, it could descend to around 22,350. Any potential rally may encounter resistance near 23,150.
Bank Nifty Analysis
Om Mehra, Technical Research Analyst at SAMCO Securities, commented on the Bank Nifty, which ended the session at 51,502.70, reflecting a slight decline of 0.18%. Despite the general market turbulence, the Bank Nifty outperformed many of its sectoral peers. The index has been moving within a parallel channel, indicating resilience, while the daily RSI suggests potential exhaustion in momentum. He pointed out that a corrective move towards the 50,800 level cannot be discounted, with critical support between 50,500 and 50,600.
Intraday Stock Picks Under ₹100
For those looking for investment opportunities, market analysts have identified several intraday stocks under ₹100 worth considering:
- VIP Clothing: Buy between ₹32 and ₹33; targets of ₹34.75, ₹36, ₹38, and ₹40; stop loss at ₹30.
- NBCC: Buy within the range of ₹80 to ₹81; target prices at ₹84.50, ₹86, and ₹88; stop loss at ₹78.
- NFL: Recommended to sell at ₹79.30 with a target of ₹75.50 and stop loss at ₹81.50.
- Lloyds Engineering: Suggested buy at ₹58; target of ₹63 with a stop loss at ₹53 (Closing Basis).
- Alembic: Buy at ₹100 to ₹101; anticipated target of ₹120; stop loss at ₹95 (Closing Basis).
A Reflection on Market History
The term "Black Monday" is synonymous with catastrophic market declines, most notably on October 19, 1987, when the US Dow Jones Industrial Average fell by 22.6% in a single day. Fast forward to April 6, 2025, and market analyst Jim Cramer has issued a warning about potential turbulence expected on April 7, due to ongoing tariff disputes. Cramer urged President Trump to engage with countries that have refrained from implementing retaliatory tariffs, highlighting the need for diplomatic dialogue amidst economic uncertainty.
As the market navigates these challenges, staying informed and agile will be crucial for investors looking to capitalize on opportunities.
