Closing Bell: Tariffs at play again; Nifty at 22,400, Sensex down 380 pts on policy day

Indian equity indices ended on a negative note with Nifty at 22,400 on April 9. 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.

We wrap up today's edition of the Moneycontrol live market blog, and will be back Friday morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

Today both the Sensex and Nifty-50 closed in the red with Sensex fell by ~380 points to end at 73,847.15, while the Nifty-50 dropped by ~137 points to close at 22,399.15. Today’s fall was largely attributed to escalating global trade tensions, particularly the imposition of a 26% tariff on Indian goods by the U.S., which heightened investor concerns about potential economic impacts. Despite the RBI’s decision to cut interest rates by 25 basis points to stimulate growth, market sentiment remained cautious. The broader market also suffered, with the BSE Midcap and Small cap indices dipping by 0.73% and 1.08%, respectively.

Sector-wise, IT and pharmaceutical stocks were among the hardest hit, with the IT sector declining by 2.3% due to its significant exposure to the U.S. market. Overall, the market's performance was influenced by a global sell-off, with other Asian markets also experiencing significant losses, further exacerbating the negative sentiment in Indian markets.

Volatility is likely to be the order of the day over next few weeks with a negative bias, as uncertainty caused by the US decision to impose differential import tariffs have pushed investors to reduce equity bets at regular intervals. With local currency taking a huge knock over the past few sessions coupled with renewed FII selling in the current month so far, investors are resorting to caution.

Nifty continues to trade below the upper band of the falling channel and the 21-day EMA, indicating short-term weakness and resistance near 22,500. The RSI shows a bearish crossover, reinforcing the negative momentum. The trend is expected to stay weak below 22,500, with a breakout potentially driving the index to 22,750–22,800. Failure to cross 22,500 may drag it down toward 22,000.

Markets slipped after a brief rebound, losing over half a percent as the choppy trend persisted. Sentiment took a hit following the announcement of fresh U.S. tariffs on China, leading to a gap-down opening and a largely range-bound session thereafter. The outcome of the MPC meeting—where a 25-bps rate cut was announced along with a shift to an accommodative stance—failed to evoke any meaningful market reaction. As a result, the Nifty index closed at 22,399.15, down 0.59%.

On the sectoral front, most indices ended in the red, with IT, pharma, and realty emerging as the top losers. The broader market also faced pressure, with losses ranging from 0.60% to 1%.

The ongoing volatility continues to keep traders cautious, and any near-term relief seems unlikely given the recent tariff-related developments and the onset of the earnings season. Investors will react to the IT major, TCS’s results in early trades on Friday, which could influence market direction initially. Until volatility, as reflected by the elevated India VIX, cools off, we recommend maintaining a hedged approach to navigate potential sharp swings.

Global financial markets are witnessing renewed selling pressure following the enactment of reciprocal tariffs. A trade war is escalating global risk, with a rise in U.S. bond yields prompting a sell-off in the world's safe treasury assets.

In India, a cut in the repo rate, along with the adaptation of an accommodative policy stance, is taken as a constructive step. However, it has done little to uplift overall market sentiment, as the world is embracing recessionary risk.

The IT sector continues to lag ahead of Q4 results, which are estimated to be weak. Pharma remains cautious over potential headwinds arising from the imposition of U.S. tariffs on the industry.

On a positive note, domestic focus sectors like FMCG are trading better due to lack of recessionary risk from global slowdown.

After the initial decline, the Index remained rangebound for rest of the day, ultimately closing at 22,399.15 with a loss of 136.70 points. Except for the Auto and FMCG sectors, all other sectors ended the session in red, with PSU Banks and IT being the major laggards.

A notable disparity was observed in the broader market, where Midcaps performed in line with the Frontline Index, while Smallcaps underperformed. The support level for the Index remains at 22,270, while the resistance level has shifted lower to 22,530.

Indian rupee ended 45 paise lower at 86.69 per dollar on Wednesday versus previous close of 86.24

Indian equity indices ended on a negative note with Nifty at 22,400 on April 9.

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.

Wipro, SBI, Tech Mahindra, L&T, Trent were among major losers on the Nifty, while gainers included Nestle, HUL, Tata Consumer, Titan Company, Power Grid Corp.

BSE Midcap index was down 0.8 percent and Smallcap index was down 1 percent.

Except Consumer Durables (up 0.3 percent) and FMCG (Up 1.5 percent), all other sectoral indices ended in the red with Realty, IT and PSU Bank down 2 percent each.

#1 AQ indicators improving across many MFIs

#2 Top performers include CA Grameen, Ujjivan SFB & L&T Finance

#3 Recovery will be gradual, leading to sector consolidation

#4 Many players still face AQ challenges and will need capital

Tata Consultancy Services (TCS) will announce its Q4 FY25 earnings on April 10.

Shilpa Medicare Limited, headquartered at Raichur, Karnataka, India, has received approval from USFDA for Varenicline Tablets, 0.5 and 1 mg.

The Sensex was down 372.87 points or 0.50 percent at 73,854.21, and the Nifty was down 137.90 points or 0.61 percent at 22,397.95. About 1220 shares advanced, 2145 shares declined, and 112 shares unchanged.

The RBI has proven yet again that it is an ahead-of-the-curve central bank. The RBI has not only cut rates to support growth amid global turmoil, but also swiftly changed its stance from 'Neutral' to 'Accommodative'. The policy change indicates the RBI is in a good position to cut rates if needed going forward. The RBI indicating that the inflation is benign, and the economic growth will be non-inflationary going forward, was one of the highlights of the policy.

The RBI has done its part and delivered the much-needed relief to the industry on time. The government should make efforts to engage with the US government to find a solution to the trade tariff issue. The Indian economy remains strong, with key risks of a global slowdown due to trade tariffs, geopolitical tensions, and protectionism.

#1 After a 17 percent correction, Vedanta presents a good opportunity for FY26-27

#2 Average FCF/dividend yield of 12/7 percent over FY26-27

#3 The current market price reflects a 12 percent discount to spot LME prices

#4 Strong position on cost, with aluminium/zinc smelters in the first quartile of the global cost curve

#5 Monitor potential issues with capital allocation/restructuring

The Sensex was down 385.93 points or 0.52 percent at 73,841.15, and the Nifty was down 134.10 points or 0.60 percent at 22,401.75. About 1156 shares advanced, 2161 shares declined, and 118 shares unchanged.

#1 Stainless Steel sales volumes grow 13% YoY and drop 23% MoM to 6,619 MT

#2 Stainless Steel average realisations increase 1% YoY and decline 1% MoM to Rs 1.28 lakh per MT

#3 Aluminium foil sales volumes drop 2% YoY and grow 18% MoM to 1,991 MT

#4 Aluminium foil average realisation jumps 14% YoY and 2% MoM to Rs 3.59 lakh per MT

The company launched its Rs 1,250 crore qualified institutions placement (QIP) issue on April 8, with a floor price set at Rs 1,019.25 per share.

Prestige Estates Projects announced a series of successful residential launches during the fourth quarter of FY25.

The quarter saw the launch of four projects across Bengaluru, Mumbai, and Hyderabad, covering a total developable area of 14.03 million square feet, comprising 4,548 units, with an aggregate Gross Development Value (GDV) of Rs 1,61,338 million.

#1 Growth strategy focuses on using opticks AI for better client conversions, expanding into connected TV

#2 Growth strategy focuses on targeting SMEs for localised ads & better RoI, adopting agentic AI internally to boost operating leverage

The company received an order from State Tax Officer, Group-X- Intelligence-I, Chennai-6 imposing a penalty amounting to Rs 1,38,22,595 in relation to tax short paid or liability short-assessed.

The Debenture Allotment Committee of the company has at its meeting held today i.e., 9 April 2025, allotted 1,50,000 NCDs, at face value of Rs 1,00,000 each, aggregating to Rs 1503.04 crore on private placement basis.

The Board has appointed Virenderkumar Mehta as Chief Financial Officer of the company, effective April 8.

The company has incorporated NTPC-MAHAPREIT Green Energy, a 74:26 joint venture between the company and Mahatma Phule Renewable Energy and Infrastructure Technology (MAHAPREIT). NTPC-MAHAPREIT Green Energy will develop renewable energy parks in Maharashtra and any other state in India.

The Sensex was down 367.12 points or 0.49 percent at 73,859.96, and the Nifty was down 124.20 points or 0.55 percent at 22,411.65. About 1150 shares advanced, 2138 shares declined, and 117 shares unchanged.

The company has announced the incorporation of its wholly owned subsidiary, GAIL Global IFSC, in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City), Gujarat. GAIL Global IFSC will operate as a finance company in IFSC GIFT City.

#1 Q4 pre-sales of Rs 10,200 crore, up 7 percent YoY, the highest-ever

#2 Sales volumes of 7.5msf, down 8 percent YoY, realisations up 16 percent YoY to Rs 13,381/sq ft

#3 Strong sales but weakness in housing volumes raises concerns about future growth

RBI cut the key policy rate by 25 bps as also switched to an accommodative stance. This clears the runway for continued positive momentum in fixed income markets. While the risk of a global disruption remains in view of the ongoing developments on tariffs, the guidance is for further cuts in forthcoming policies.

Bond yields remained slightly higher immediately after policy announcement as the rates have eased significantly in the prelude but are expected to continue to soften going forward. It would seem that in the current environment of uncertainty, the central bank is going to do the heavy lifting yet again, as it did during Covid disruption. That suggests a supportive environment for fixed income in the immediate term.

Madari Jaypal Krupal, the Deputy General Manager - Product Head - Assets & Co-Lending, has resigned from the services of the bank due to personal reasons, effective April 8.

The company has declared the commercial operations of the second part capacity of 90 MW out of the 150 MW Dayapar Wind Energy Project Phase-I in Bhuj, Gujarat.

The first part capacity of 50 MW was already declared in commercial operation in November 2023. With this, the total installed and commercial capacity of the NTPC group will become 80,020 MW.

RBI reduces rates by 25bps: The Monetary Policy Committee's (MPC) decision to reduce the policy rate by 25 basis points, from 6.25% to 6%, was largely in line with market expectations. The RBI lowered the growth forecast to 6.50% and inflation to 4.00% for FY2026. The RBI importantly changed the stance on monetary policy to ‘accommodative’, taking comfort from continued disinflation from food, oil and commodities, lending continuity to monetary policy actions from the RBI.

Considering the benign inflation outlook, the interest rates even after today’s cut are in neutral territory. The rate cut could be conducive to the growth dynamics with RBI’s intent of ensuring credit flow to the productive sectors in the economy. The RBI action is consistent with the Government of India’s efforts and emphasis to support growth.

We feel the RBI has done a fine balancing act of managing growth inflation dynamics in the current economic environment loaded with global uncertainties.

Toll collections in March increased by 15.8% to Rs 556.8 crore, compared to Rs 480.9 crore in the same month last year. Toll revenue in FY25 rose 23% to Rs 6,360 crore, compared to Rs 5,169 crore in FY24.

The company has entered into a joint venture (JV) agreement with Sembcorp Green Hydrogen India to explore renewable energy and green hydrogen projects across India.

RBI’s reiteration of its pro-growth stance amidst current global backdrop is reassuring. Extending co-lending rules to all regulated entities and all loans, could prove to be a game changer for the domestic financial sector overtime. It presents a huge opportunity for NBFCs to build on their niche strengths and partnerships, towards wider credit dissemination.

The Sensex was down 353.42 points or 0.48 percent at 73,873.66, and the Nifty was down 123.65 points or 0.55 percent at 22,412.20. About 1036 shares advanced, 2178 shares declined, and 137 shares unchanged.

The Reserve Bank of India’s Monetary Policy Committee (MPC) has cut the repo rate by 25 basis points to 6%, shifting to an accommodative stance. This decision, backed unanimously, reflects the need to support economic growth amid increasing global uncertainties. With the United States imposing fresh tariffs, including a 26% duty on Indian imports, the risk to global and domestic growth has increased downside risk, likely to weigh on India’s export competitiveness and broader trade sentiment.

Although the inflation outlook is less bleak than a few months ago due to better food price developments, encouraging rabi crop forecasts, and lower crude prices, RBI is still cautious. CPI inflation is projected to stay comfortable, but vigilance regarding price pressures is necessary. Growth is at about 6.5% for real GDP in FY 2025–26, down slightly from our previous estimate due to external factors arising from the global slowdown and trade disruptions. Rural demand remain strong, and urban consumption is recovering, supported by investments and government infrastructure.

A shift to accommodative stance, notwithstanding the earlier reference to global uncertainties has been the key takeaway. Effectively the key message is the unambiguous focus on domestic growth and the confidence that forward looking inflation is likely to be aligned closer to the policy target of 4%.

Alongside the demonstrated commitment to address liquidity dynamics, the policy stance clearly opens up the likelihood of additional rate cuts in this cycle.

Raised rating from 'accumulate' to 'buy', with a target price of Rs 5835.

Price target has been set at Rs 850 with an implication of 20% increase from last price.

As of 11:30 am, the stock is down 3.80%

Edelweiss Professional Investor Research initiates coverage of Jana Small Finance Bank.

Price target is set at RS 600, implying 39% increase from last price.

As of 11:00 am, the stock is down by 3.51%.

Proximus Global, through its messaging specialist 365squared, has unveiled 365guard, an innovative AI-powered solution designed to shield mobile network operators (MNOs) and their users from SMS spam, fraud, and smishing attacks. Proximus Global, which unites Route Mobile, Telesign, and BICS under a single umbrella, is leading the charge in shaping the secure communication landscape of tomorrow.

RBI/MPC cut repo rate by 25 bps, which was as per expected lines. It also changed its stance to neutral, which denoted that RBI is now unequivocal in its support of domestic growth and confident that inflation will move towards its desired rate of 4%. I expect the curve to steepen with the shorter end of the curve benefitting more.

In the US, the tariff induced inflation fears are rising, which will lead to rising long bond yields. High global yields will influence the longer end bond yields in India as well. Investors should stick to Short duration funds, which offer a good risk reward trade off.

#1 Demand remains strong for cables, driven by government capex & higher copper prices

#2 Revenue growth target is 18 percent in FY25/26 & 20 percent in FY27

#3 Growth concerns & raw material cost volatility following tariff changes by the US

#4 EPS estimates cut by 4-8 percent for FY26/FY27

#5 Management focussed on expanding retail, optimising the product mix, leveraging industry trends for long-term growth

The company has received a Letter of Award for the Construction and Delivery of two Coastal Research Vessel for the Geological

Survey of India.

The Board has allotted 3,695 crore equity shares of the company to the Government of India for Rs 36,950 crore. After the allotment, the Government of India's shareholding in Vodafone stands at 48.99%.

#1 Q2FY26 CPI inflation projection revised lower to 3.9 percent vs 4 percent earlier

#2 Q3FY26 CPI inflation projection unchanged at 3.8 percent

#3 Q4FY26 CPI inflation projection revised higher to 4.4 percent vs 4.2 percent earlier

#1 Real GDP projection for Q2FY26 revised to 6.7 percent vs 7 percent earlier

#2 Real GDP projection for Q3FY26 revised to 6.6 percent vs 6.5 percent earlier

#3 Real GDP projection for Q4FY26 revised to 6.3 percent vs 6.5 percent earlier

The company's subsidiary, Sasken Design Solutions Pte, Singapore, acquired 100% of the share capital of BORQS International Holding Corp for $40 million (up to Rs 338 crore). Following this acquisition, BORQS International will become a step-down subsidiary of the company.

The company has received final approval from the United States Food and Drug Administration (USFDA) to market its Teriflunomide tablets, which are available in 7 mg and 14 mg strengths. Teriflunomide tablets are used for the treatment of patients with relapsing forms of multiple sclerosis. According to IQVIATM, the market size of Teriflunomide tablets is approximately $402 million in the US, and the global market size is approximately $908 million.

The company has entered into a strategic Memorandum of Understanding (MoU) with Garden Reach Shipbuilders & Engineers to enhance indigenous commercial shipbuilding capabilities.