The Indian stock market witnessed a significant downturn on April 1, 2025, with the Nifty 50 index crashing 1.5% to close at 23,165.70 points, while the BSE Sensex fell 1.8% to 76,024.51 points. This dramatic drop, amounting to a loss of 1,400 points during intraday trading, was largely attributed to growing uncertainties surrounding impending reciprocal tariffs announced by U.S. President Donald Trump.
As investors prepared for what Trump dubbed as ‘Liberation Day’ on April 2, concerns over the potential impact of these tariffs on global trade loomed large. Wall Street, however, opened higher on the same day, with the S&P 500 rising 0.38% to 5,633.07 points and the Nasdaq Composite gaining 0.87% to reach 17,449.89 points. The Dow Jones Industrial Average managed a slight decline of 0.03%, closing at 41,989.96 points.
Market analysts have expressed mixed sentiments regarding the unfolding situation. Sumeet Bagadia, Executive Director at Choice Broking, recommended two stocks for investors to consider on April 2. Meanwhile, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, and Shiju Koothupalakkal, Senior Manager and Technical Research Analyst of PL Capital at PrabhudasLilladher, both suggested three stocks each for potential investment.
Among the notable recommendations, Mangalore Chemicals & Fertilizers Ltd. (MANGCHEFER) was highlighted as a strong buy at ₹161.11, targeting ₹170 with a stop-loss at ₹155. The stock has shown robust buying interest, indicating a bullish trend supported by significant trading volume and positive technical indicators.
Similarly, Ami Organics Ltd. (AMIORG) was recommended for purchase at ₹2,527.65, with a target of ₹2,700 and a stop-loss set at ₹2,430. Following a period of consolidation, this stock has broken through key levels and is expected to continue its upward trajectory.
Power Grid Corporation of India Ltd. (POWERGRID) is also on the radar, with analysts suggesting a buy at ₹289, targeting ₹298, and a stop-loss at ₹285. The stock is showing signs of a bullish reversal pattern, making it an attractive option for investors.
In addition to these picks, BSE Ltd., Divis Laboratories Ltd., Lemon Tree Hotels, Graphite India, and Trent Ltd. have also received favorable recommendations from analysts, indicating a broader interest in various sectors of the market.
On the macroeconomic front, Axis Securities has advised focusing on domestic-facing sectors, citing their resilience against the anticipated impacts of reciprocal tariffs. The report emphasized that large-cap private banks, telecom, consumption, and hospitals are expected to outperform amidst the current climate of uncertainty.
However, the IT sector has faced downgrades due to concerns over a slowdown in U.S. IT spending and delays in discretionary spending, which could impact growth prospects for companies in that space. Analysts are closely monitoring the upcoming RBI Monetary Policy Committee (MPC) decision in April and earnings guidance for Q4FY25, which could further influence market dynamics.
As the market opened on April 2, 2025, the Nifty managed to rise slightly, reflecting an overall cautious optimism among investors. The Nifty 50 opened at 23,215.45, up 49.75 points, while the Sensex rose by 232.21 points to 76,256.72. Traders are keenly watching for the market to close above 23,350 to regain bullish momentum.
In terms of trading volumes, NMDC and Coal India reported weak results for March, with NMDC’s production down 27% year-on-year and Coal India’s production falling by 3%. This has raised concerns about the stability of these stocks, prompting a cautious stance from analysts.
In the commodities market, crude oil futures remained steady as traders awaited the outcome of the U.S. tariff decision. Brent oil futures were trading slightly up at $74.50, while West Texas Intermediate (WTI) futures also held steady. The rupee fell 23 paise to 85.73 against the U.S. dollar during early trade, reflecting the ongoing volatility in the market.
On the corporate front, several companies have made headlines. Lemon Tree Hotels launched a new hotel in Pune, while Piramal Pharma commenced the commercial production of Sevoflurane in Telangana. Additionally, Shree Cement has started commercial production at its new Clinker Grinding Unit in Uttar Pradesh.
Investors are also keeping an eye on the upcoming IPO of Om Freight Forwarders Limited, which has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering.
As the market navigates through these turbulent waters, analysts stress the importance of prudent investment strategies and staying informed about the rapidly changing economic landscape. The upcoming days will be pivotal as the market reacts to the tariff announcements and assesses the implications for various sectors.
