Final Trade: ​Sensex tanks 1,390 points, Nifty drops below 23,200 amid global tariff jitters

Indian equity markets ended deep in the red on April 1, with the Sensex nosediving 1,390 points (1.80 per cent) to close at 76,024, while the Nifty 50 tumbled 1.5 per cent to 23,180.65. Investors turned risk-averse ahead of the anticipated "Trump Tariff" coming into effect on April 2, sparking a wave of uncertainty across markets.

Nifty top losers: IT, banking stocks drag; IndusInd Bank, Trent shine

The market saw broad-based selling, with HCL Technologies, Bajaj Finserv, HDFC Bank, Infosys, and Hindalco Industries emerging as the biggest losers on the Nifty. However, IndusInd Bank, Trent, Bajaj Auto, Jio Financial, and HDFC Life managed to close in the green.

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Broader markets mixed; midcaps under pressure, smallcaps resilient

The BSE Midcap index fell 0.9 per cent, mirroring weakness in large-cap stocks, while the BSE Smallcap index edged up by 0.2 per cent, reflecting selective buying interest.

Top Laggards: IT, realty, and consumer durables fall 2%

Barring media, oil & gas, and telecom, all other sectors closed in the red. The Nifty IT, realty, and consumer durables indices sank by 2 per cent each, while financials and FMCG stocks also witnessed notable declines.

Market triggers: Trump Tariff, RBI policy, and global market trends

Trump’s global tariffs loom large

Investor sentiment weakened as US President Donald Trump confirmed a uniform global tariff on all countries starting April 2, calling it "Liberation Day." The tariff move has created uncertainty about trade flows and global supply chains, leading to heightened volatility in Indian equities.

RBI monetary policy expectations

The RBI’s upcoming Monetary Policy Committee (MPC) meeting scheduled between April 7-9 is another key event on investors’ radar. Markets are pricing in a 25 basis point rate cut, with expectations of continued liquidity support from the central bank. The RBI’s projections for FY26 GDP growth and inflation will be crucial in setting the market tone.

Global markets remain mixed

While US markets ended higher overnight, Asian equities opened in the green, tracking Wall Street’s optimism. However, Indian markets diverged due to domestic and global macro concerns, leading to heavy sell-offs.

Market Outlook

With Trump’s tariff decision set to take effect and the RBI policy announcement around the corner, volatility is expected to continue in the near term. Analysts advise investors to stay cautious, focus on stock-specific movements, and brace for further fluctuations in the market.