Nifty, Sensex trade flat, as investors cautious amid tariff tremors; IT, auto stocks tumble

FIIs turned net buyers on April 15 as they purchased equities worth Rs 6,065 crore.

Indian equity markets saw a muted start on April 16, capping a strong two-day rally, as tariff jitters continued to roil global sentiment. The Nifty 50 and Sensex traded flat, tracking weak international cues.

At 09:56 am, the Sensex was up 83.03 points or 0.11 percent at 76,817.92, and the Nifty was up 23.15 points or 0.10 percent at 23,351.70. About 2195 shares advanced, 827 shares declined, and 128 shares unchanged.

On the flip side, the broader markets outperformed the frontline indices. The Nifty Midcap 100 index eked out minor gains of 0.05 percent, while the Nifty Smallcap 100 index gained around half a percent on open.

The sectoral indices presented a mixed trend. The Nifty IT and Nifty Auto indices were the top laggards in the pack, dragged by the ongoing tariff turbulence shaking the global markets. On the flip side, Bank Nifty, Nifty Private Bank and Nifty PSU Bank extended gains from the previous session, rising despite a muted market sentiment.

Shares of IREDA soared over six percent on reporting positive numbers for the quarter ended March, with net profit jumping 49 percent to Rs 501.55 crore for the fourth quarter of FY25 as against Rs 337.39 crore net profit reported in the Q4 of FY25.

"A significant take away from the recent market trend is the resilience of many domestic consumption bluechips. Stocks like Bajaj Finance, Bharti Airtel, Indigo Airlines and Eicher Motors are at 52-week highs. HDFC Bank, ICICI Bank and Kotak Bank are resilient while IT stocks are weak. The market is sending the message that domestic consumption themes will be safer than externally-linked segments during this chaotic global environment," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

Follow our live blog to catch all the updates

Global cues weak

Overnight, Wall Street erased intraday gains to end in the red, amid tariff-related uncertainties. Trump's April 2 announcement of sweeping tariffs sparked turmoil in the market and fueled worries about a global trade war and possible recession. The Dow Jones Industrial Average fell 0.38 percent, the S&P 500 lost 0.17 percent and the Nasdaq Composite lost 0.05 percent.

Taking cues from the mother market, Asian indices also saw a negative start on Wednesday, with Japan's Nikkei 225 tumbling half a percent, while South Korea's Kospi and Kosdaq indices were also lower. Hong Kong's Hang Seng gauge slipped around a percent, while Taiwan's benchmark index reported losses as well.

Tariff investigations

U.S. President Donald Trump directed that Commerce Department to investigate semiconductor and pharmaceutical imports, which raises the possibility of incoming tariffs. Further, Trump also launched a probe into the need for tariffs on critical minerals, the latest action in an expanding trade war that has targeted key sectors of the global economy.

India's CPI eases to multi-year lows

On the domestic front, a spark of optimism to bolster sentiment: India's consumer price inflation fell to a 67-month low of 3.34 percent in March, a figure last seen in 2019. The easing inflation comes as a result of food inflation declining further, with economists firming up their expectations of a further rate cut in June policy meeting of the Reserve Bank of India, according to data released on April 11.

FIIs turn buyers

Foreign investors returned to Indian equities with conviction on April 15, snapping their selling streak by purchasing shares worth Rs 6,065 crore, adding confidence to the markets.

The previous session marked their largest single-day net buy since March 27, 2025, when they had pumped in Rs 11,111.25 crore. In contrast, domestic institutional investors sold stocks worth Rs 1,951 crore.

Technical levels to watch

On the downside, experts noted that the 23,000 level acts as immediate support. A breach below this level could trigger extended selling pressure. On the upside, 23,500 remains a key resistance, with a major hurdle near 23,800. A sustained close above these levels would be crucial to confirm a bullish trend and could pave the way for higher targets.

For long-term traders, any move above Nifty’s 200-day average of 24,054 will be a more reliable positive reference point, stated Prashanth Tapse, Senior VP (Research), Mehta Equities.

Strategy for investors and traders

"Given the current market momentum, traders are advised to maintain a disciplined approach with strict risk management while capitalizing on emerging opportunities," said Hardik Matalia, Derivative Analyst, Choice Broking.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.