Share Market: India’s benchmark indices, Sensex and Nifty50, ended the day’s trade in red on Tuesday, April 1, 2025. The Sensex (index with top 30 firms) tumbled 1390.41 points to close at 76,024.51 on Tuesday. Meanwhile, Nifty50 (index with top 50 firms) was down 353.65 points to close at 23,165.70 points. Among Sensex-listed companies, 2 stocks advanced, while 28 saw declines on Tuesday.
Moreover, the market capitalisation of all listed companies on BSE declined by Rs 3.43 lakh crore to Rs 409.44 lakh crore.
Indian stocks faced heavy selling pressure on Tuesday’s opening as both indices fell amid the April 2 tariff threat. Experts stated that the Trump tariff announcement on April 2 is the major event now. However, the markets have discounted the impact, but the reality will seem worse initially and then improve as concessions and exclusions are announced.
Share Market: 5 Key Reasons Behind The Drop
- Uncertainty Over Trump’s Tariff Plan: Indian stocks faced heavy selling pressure on Tuesday’s opening, as both indices fell amid the April 2 tariff threat. Experts stated that the Trump tariff announcement on April 2 is the major event now. There is widespread uncertainty surrounding the US President Donald Trump’s tariff plan.
- RBI MPC: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will meet on April 7-9. The MPC will decide the policy stance and interest rates. The MPC may announce a 25 basis point rate cut on April 9. However, market participants are more interested in understanding the central bank’s perspective on India’s shifting growth and inflation landscape.
- Caution Before Q4 Earnings Announcement: The Indian corporates will announce the earnings of the December quarter (Q4FY25). Investors are cautious before the earnings announcement.
- Fresh Triggers: There are no fresh triggers, as of now, which can boost the current share market growth.
- Future Prediction: Experts predict that Nifty needs to rise above 23,700-23,750 to regain strength. Otherwise, it might move sideways with a downward trend.
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