Black Monday: Nifty, Sensex Crash 5% To Below March Lows; Auto, IT, Metal Stocks In Free Fall

Stock Market Today Opening Bell: It's a black Monday for the Indian stock market with Sensex and Nifty nosediving by 6% in the opening bell. Sensex lost 3,939.68 points and crashed below 71,500 levels, while Nifty succumbed to severe selling pressure erased the 22,000 mark and further toppled below the pivotal 21,800. Overall, Nifty dropped by 1,160.8 points in the early trade. All indices are in deep red, with India's volatility index skyrocketing by more than 50.5%.

Nifty 50 and Sensex opened Monday's session down nearly 4.5%. Major stocks in the IT, pharma and metal sectors faced the brunt of the stock market sell-off, which was triggered by US President Donald Trump's tariffs announcement. Nearly all the sectoral indices and broad market indices opened on a weak note on Monday.

Nifty 50 was down more than 6% in the pre-market session, whereas, BSE Sensex tumbled nearly 4% in the pre-opening session. Earlier, Gift Nifty indicated a gap down the start of the Indian stock market after nearly all the Asian markets witnessed a bloodbath on Monday. Japan had to stop futures trading for a brief time on Monday after there was a circuit breaker. The development came amid huge panic selling across Asian markets.

The Indian stock market witnessed a sharp decline last week after Donald Trump's tariffs kept investors on edge. Domestic equity benchmarks Sensex and Nifty 50 snapped their three-week rally, with Sensex settling near the week's low at 75,364.69 points and Nifty 50 dragging below the 23000 mark. During last week's trading sessions BSE Sensex tanked nearly 2,050.23 points or 2.64% and NSE Nifty was down nearly 614.8 points.

Nifty's key support level is seen below 21,300, indicating more bearish sticks in the market. Prashanth Tapse, Senior VP (Research), Mehta Equities said, "With key support for Nifty seen at 21,281, traders brace for further downside. Ahead of RBI's rate decision on April 9 and TCS's earnings on April 10, the mood remains cautious. Sell strategies are advised for Nifty, Bank Nifty, and stocks like COAL INDIA, M&M FINANCIAL, and M&M on intraday strength."

How Will Stock Market React This Week? Know From Experts

Vinod Nair, Head of Research, Geojit Investments said, Donald Trump's trade tariff announcement has sparked a bearish trend across global markets as investors consider its wider implications, according to experts. Declining US bond yields and oil prices are hinting towards a potential economic slowdown and heightened risk of recession. While mentioning the relatively lower impact of Trump's tariffs on India compared to Asian counterparts, Vinod Nair, Head of Research, Geojit Investments Limited, said that tariffs remain substantially than initially projected.

"As Q4 approaches, a sequential improvement in corporate performance is anticipated. However, prevailing weak market sentiment suggests that the phase of consolidation may persist in the near term," said Nair.

Underlining the bearish trend on Nifty, Rupak De, Senior Technical Analyst at LKP Securities, said, "The Nifty has given a consolidation breakdown on the daily chart, indicating bearishness. Initially, the index found support at the crucial 22,900 level. However, sentiment remains weak, and a further decline from the current level could trigger additional market correction. On the lower end, if Nifty falls below 22,900, it may move toward 22,676. On the higher end, resistance is seen at 23,100. A move above 23,100 would provide a clear signal for a strong uptrend."

During the week filled with stock market volatility, foreign investors and domestic institutional investors turned into net sellers in the cash market on Friday, April 4.

Stocks To Focus Today

Tata Motors shares will remain in focus on Monday, April 7 after the company announced that its UK subsidiary, Jaguar Land Rover, announced a pause in vehicle shipments to the US. FMCG giant, ITC earlier announced the acquisition of 2.62 lakh equity shares of ample foods for Rs 131 crore leading to its expansion, hence the stock will remain in focus today. Apart from the two, shares of TVS Motors, Delhivery, Federal Bank, AstraZeneca Pharma, Godrej Properties, etc, will remain in focus today.

Key Events To Watch Out For This Week

While investors may calculate the long-term impact of Donald Trump tariff announcement, they will be keenly observing the development around the Reserve Bank of India's Monetary Policy Committee Meeting (RBI MPC Meet) and repo rate cut. The RBI MPC meet will begin on Monday and its outcome, along with repo rate change decision, will be announced on April 9.

The week will also mark the beginning of Q4 earnings. IT giant Tata Consultancy Services (TCS) will announce its results on Thursday, April 10. It is also likely to declare a final dividend for financial year, FY 2024-25 on the same day. Apart from RBI MPC and Q4 earnings, this week will also mark the announcement of retail inflation data and IIP for March 2025.