The Indian stock market closed in negative territory on March 28, 2025, as profit booking amid weak global cues weighed heavily on investor sentiment. The benchmark indices, the S&P BSE Sensex and the NSE Nifty50, ended the day lower, with the Sensex closing down 192 points, or 0.25 percent, at 77,414.92, while the Nifty settled 73 points, or 0.31 percent, down at 23,519.35.
Investors lost nearly ₹2 lakh crore in a single day, as the overall market capitalization of BSE-listed firms dropped to approximately ₹413 lakh crore from about ₹415 lakh crore in the previous session. This decline was largely attributed to the impact of U.S. President Donald Trump's recent tariff policies, which have left market participants on edge.
On the day, the mid-cap and small-cap indices underperformed, with the BSE Midcap index falling 0.68 percent and the Smallcap index declining 0.35 percent. Major Asian and European indices also suffered significant losses as concerns over Trump's aggressive tariffs raised fears of a deeper global trade war.
IT and automobile majors were among the top drags on the Sensex index, with companies like Infosys, Mahindra and Mahindra, TCS, HCL Tech, and Maruti all contributing to the downturn. As Vinod Nair, Head of Research at Geojit Investments Limited, noted, "Asian markets are experiencing a new consolidation phase as the latest US tariff measures are expected to impact major manufacturing economies significantly. Additionally, a rise in Japan's CPI has contributed to the prevailing weakness."
Despite the downturn, some stocks managed to shine. Shares of Tata Consumer Products rose by 2.91 percent, Kotak Mahindra Bank by 2.13 percent, and Apollo Hospitals Enterprise by 1.88 percent, ending as the top gainers for the day. Conversely, among the major losers were IndusInd Bank, which fell by 3.64 percent, Wipro down by 3.56 percent, and Shriram Finance down by 3.28 percent.
The Nifty Media index fell by 2.29 percent, IT by 1.76 percent, Realty by 1.42 percent, and Auto by 1.03 percent, reflecting the broader market's struggles. The Nifty Bank index ended flat while the Financial Services sector saw a slight rise of 0.25 percent.
In terms of trading activity, about 2,846 stocks were exchanged, with 1,224 advancing, 1,545 declining, and 77 remaining unchanged. Notably, 93 stocks hit their upper circuit, while 110 reached their lower circuit limits during the session.
Foreign institutional investors (FIIs) have turned net buyers after months of selling, contributing to some positive sentiment on Dalal Street. In March, they were net buyers of ₹6,367 crore, marking a shift in market dynamics. On March 27, they bought ₹11,111.25 crore worth of equities, according to provisional data.
Looking ahead, analysts suggest that while the current market sentiment is fragile due to tariff concerns, there are positive domestic indicators that could help stabilize the situation. Hopes for better Q4 earnings and the possibility of a 25 basis point repo rate cut by the Reserve Bank of India are factors that may support a rebound.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlighted that the market's resilience, despite tariff threats, stems from renewed buying by FIIs. He stated, "The market's resilience, despite Trump’s reciprocal tariff threats, comes from the renewed buying by FIIs and the confidence this has given to the bulls." He further noted that the market will be closely watching the upcoming monetary policy meeting on April 9, 2025, and the subsequent Q4 results.
As the market navigates through these turbulent waters, Rupak De, Senior Technical Analyst at LKP Securities, provided insights into potential support levels for the Nifty. He indicated that 23,400 might serve as immediate support, and a fall below that could lead the index towards 23,200. Conversely, if the Nifty holds above 24,200, it may witness further upside.
In addition to the stock market fluctuations, the Indian rupee showed some strength, ending 32 paise higher at 85.46 per US dollar, compared to Thursday's close of 85.78. This rally was driven by strong FII inflows, which have bolstered sentiment among currency traders.
In summary, the Indian stock market faced significant challenges on March 28, 2025, as profit booking and global uncertainties took their toll. However, with foreign investors returning and domestic indicators showing promise, there remains a glimmer of hope for recovery in the near future.
