Sensex ends 400 pts lower, Nifty below 22,400 as tariff jitters outweigh RBI's rate cut; FMCG stocks shine

Wipro, SBI, L&T, Trent and Tech Mahindra were the top laggards on the Nifty.

Benchmark indices Nifty and Sensex continued to trade with steep losses on April 9, dragged down by a sharp fall in IT, metal, pharma and PSU bank stocks. Sentiment worsened after the Reserve Bank of India lowered its GDP growth forecast for FY26 to 6.5 percent, from 6.7 percent earlier. However, the RBI cut the key lending rate by 25 basis points in a unanimous decision by the Monetary Policy Committee.

At close, the Sensex was down 379.93 points or 0.51 percent at 73,847.15, and the Nifty was down 136.70 points or 0.61 percent at 22,399.15. About 1500 shares advanced, 2241 shares declined, and 138 shares unchanged.

“The RBI has signalled a decisive pivot towards growth. With inflation expectations anchored—FY26 CPI forecast now revised lower to 4 percent—the central bank has found room to support demand without risking macro stability,” said Anirudh Garg, Partner and Fund Manager at Invasset PMS.

Still, uncertainty around tariffs has left investors on edge. “Uncertainty reigns supreme. How global trade and the global economy evolve from this chaos remains to be seen. But market downturns will offer opportunities for brave investors with a long-term view,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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He added that India is likely to be among the least impacted large economies in this “Trump shakeout.” Domestic consumption remains resilient, and the 25 bps rate cut could provide further monetary stimulus. The sharp drop in crude oil prices is also a positive for India. However, a global recession—or worse, stagflation—could cause serious damage, and investors should remain cautious.

The broader market reflected the weak mood, with midcap and smallcap indices falling 0.5 percent and 0.9 percent, respectively. Analysts remain wary of the space, as valuations still haven’t eased.

FMCG stocks outperformed, rising nearly 2 percent, as the RBI’s rate cut and lower inflation forecast sparked hopes of stronger demand in the new fiscal year. Nifty Consumer Durables also posted modest gains of 0.3 percent. On the other hand, Nifty IT was the worst hit, crashing over 2 percent on continued concerns around tariffs. Pharma and Metal stocks dropped more than 1.8 percent each, while PSU Bank and Realty declined over 1 percent. Nifty Bank also tumbled 0.54 percent on April 9.

Major data centre stocks also plunged after the tech-heavy Nasdaq entered bear market territory, weighed down by fears of a global trade war. Nvidia shares have fallen 37 percent from their peak in the past 12 weeks. The stock, which hit a 52-week high on January 7, closed at $96.3 on April 8, down 1.37 percent.

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Amid the broader sell-off, shares of Asian Paints and Berger Paints gained, buoyed by a sharp decline in crude oil prices. Brent crude dipped below $62 per barrel, marking a drop of over 30 percent in the last year. Morgan Stanley has lowered its forecast for Brent, now expecting it to remain in the $60s through the second half of 2025.

Technical charts indicate that the 22,300–22,250 range may act as a cushion against further downside. The 22,000 level is seen as a key support, while 22,700–22,850 remains a critical resistance zone that, if breached, could lift market sentiment, according to Sameet Chavan of Angel One.

Among the top gainers on the Nifty were Nestle, HUL, Tata Consumer Products, Titan Company and Power Grid Corp. The biggest losers included Wipro, SBI, L&T, Trent and Tech Mahindra.