Market this week: Indian equity indices closed on a weak note on April 4 amid selloff across all sectors and the Nifty dropped below 23,000. At the end of the trading session, the Sensex closed at 75,364.69, down 930.67 points or 1.22 percent, and the Nifty closed at 22,904.45, down 345.65 points or 1.49 percent. On a weekly basis, the market has lost half of the gains made in the last 2 weeks. Sensex and Nifty fell 3 percent each. The midcap index declined 2 percent.
Nifty Bank has performed relatively better on a weekly basis. It has registered a decline of less than 0.5 percent. IT was the biggest loser due to concerns related to global growth. It declined by 9 percent. The IT index has registered the biggest weekly decline since Covid 2020. All sectoral indices have registered a decline except FMCG.
How can the market move next week?
Religare Broking's SVP Research, Ajit Mishra says that the markets came under pressure and fell by about one and a half percent. The main reason for this was weak global cues. After two days of sluggish movement, Nifty slipped below its important support level of 23,100 in early trade and continued to move downwards, finally closing at 22,904.45. Most sectors saw a lot of pressure. Among these, pharma and energy were the worst performers. Broad indices that performed better in the previous trading sessions saw a sharp correction. Mid and small cap indices saw a decline of 3 to 4 percent.
Sharp decline in global markets and especially in the US and fresh concerns over possible tariffs on pharma negatively impacted the sentiments. However, continued strength in banking and financial stocks helped limit the decline to some extent. Going forward, we expect periodic correction in the Nifty index. Traders are advised to focus on stock selection and adopt hedging strategy until the market direction becomes clear.
Prashant Tapase of Mehta Equities says that along with the fall in global equities, Indian markets also fell. Due to the broad-based sell-off, different sectors witnessed weakness of more than 2-6 percent. Investors fear that Trump's reciprocal tariff policy will lead to recession and increase inflation in America. This inflation and recession will also engulf other major economies. The sharp fall in metal and oil stocks is indicating that demand may be affected amid fears of recession.
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