Posted on April 9, 2025, by Niftynews
The Indian stock market saw a notable decline, with the Sensex dropping by 380 points, and the Nifty 50 losing 137 points. Investors were spooked by escalating global trade tensions, particularly between the US and China. This downturn reflects growing concerns about the potential consequences of ongoing tariff disputes, which have sent shockwaves through global financial markets.
The Indian stock market has been under pressure for some time due to trade war concerns, especially since US President Donald Trump intensified tariffs on Chinese goods. With fears of a global economic slowdown, investors are increasingly seeking safer investment avenues, leading to volatility in the equity markets.
Key Highlights of the Indian Stock Market on April 9, 2025
- Sensex Drops Nearly 400 Points Due to Global Trade War Concerns The Indian stock market was primarily driven lower by global events, particularly the escalating trade war between the US and China. The Sensex lost 380 points (0.51%), closing at 73,847.15, while the Nifty 50 dropped 137 points (0.61%) to close at 22,399.15.
- Global Market Weakness and Trade War Impact The downturn in the Indian stock market is part of a larger global trend, with markets in Japan and Europe also struggling due to concerns over the US-China trade war. In Japan, the Nikkei crashed by over 4%, while European indices like FTSE, CAC, and DAX each dropped 3%.
- Mid and Small-Cap Stocks Underperform The mid-cap and small-cap sectors were hit hardest in the Indian stock market on April 9, with both the BSE Midcap and BSE Smallcap indices ending the day down 0.73% and 1.08%, respectively. These segments underperformed significantly compared to the large-cap stocks.
- Investor Losses in Market Capitalisation The overall market capitalisation of companies listed on the BSE fell by approximately ₹3 lakh crore, dropping from ₹397 lakh crore to ₹394 lakh crore. This decline reflects investor uncertainty and the wider market sentiment in light of the ongoing trade war.
- Top Nifty 50 Losers and Gainers The Indian stock market saw significant losses in Nifty 50 stocks, with Wipro (down 4.23%), SBI (down 3.40%), and Tech Mahindra (down 3.31%) among the top losers. On the positive side, Nestle India (up 3.28%), Hindustan Unilever (up 2.61%), and Titan Company (up 1.81%) stood out as the biggest gainers in the index.
- Sectoral Performance: Banking and IT Stocks Underperform Most sectoral indices ended in the negative, with key losers including Nifty PSU Bank (down 2.52%), Nifty IT (down 2.19%), and Nifty Pharma (down 1.97%). The Nifty FMCG index bucked the trend, gaining 1.78%, benefiting from investor interest in more stable, defensive sectors amid market volatility.
- 52-Week Highs and Lows Despite the overall decline in the Indian stock market, 57 stocks hit their 52-week highs, such as InterGlobe Aviation (IndiGo) and Chambal Fertilisers. Meanwhile, 78 stocks reached their 52-week lows, including Jai Corp and Orchid Pharma.
- Most Active Stocks by Volume Vodafone Idea (50.15 crore shares), Tata Steel (7.34 crore shares), and YES Bank (6.95 crore shares) were among the most actively traded stocks in terms of volume on the NSE.
- Nifty 50 Outlook: Weak Sentiment and Short-Term Resistance According to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty 50 faces resistance around the 22,500 level. If the index fails to break this level, it could fall further toward 22,000. A breakout above 22,500 may lead the index toward 22,750–22,800.
- Continued Volatility Expected in the Indian Stock Market
The Indian stock market is expected to remain volatile as trade war tensions persist. With growing concerns about the potential global economic slowdown, it is crucial for investors to stay cautious and monitor key support and resistance levels.
Conclusion: Impact of Trade War on the Indian Stock Market
The Indian stock market remains under pressure as global trade tensions continue to escalate. While large-cap stocks have shown some resilience, mid and small-cap segments have struggled amid the uncertain economic landscape. Investors should be prepared for continued volatility in the coming days, as geopolitical risks, including the US-China trade war, continue to weigh on market sentiment.
By closely monitoring global events and their impact on economic growth, investors can better navigate the uncertainty and potential opportunities that arise in this turbulent market environment.
