On April 4, 2025, the Nifty 50 index experienced a significant decline, closing at 22,977.85 points, down 1.17% from the previous trading day. This drop was primarily driven by escalating global recession fears following the U.S. government’s announcement of new reciprocal tariffs.
April 4, 2025, the Nifty 50 index experienced a significant decline
Key Factors Influencing the Market:
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U.S. Tariff Announcements: The U.S. imposed a 27% retaliatory tariff on Indian imports, which, although lower than the tariffs on some other countries (e.g., China’s 34%), contributed to global trade uncertainties and negatively impacted investor sentiment.
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Sectoral Impacts:
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Pharmaceuticals: The Nifty Pharma index plummeted by 6% after former U.S. President Trump threatened unprecedented tariffs on pharmaceutical products, reversing the sector’s earlier gains.
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Information Technology (IT): IT stocks declined by 3%, adding to the previous day’s losses, amid concerns over reduced U.S. client spending.
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Energy: The energy sector dropped by 3.3%, influenced by falling crude prices and a 3.5% decline in Reliance Industries shares.
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Broader Market Trends: Mid-cap and small-cap indices also faced substantial losses, decreasing by 3% and 3.5%, respectively, reflecting widespread market volatility.
Market Outlook:
Analysts anticipate continued volatility in the near term due to global trade uncertainties and recession fears. While India’s tariff rate is comparatively favorable, the overarching concerns about global economic growth are expected to influence market performance.
Investors are advised to monitor international developments closely and consider sector-specific impacts when making investment decisions.
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