Benchmark indices ended sharply lower on Friday after Trump tariffs raised risks of global recession as world equity markets witnessed worst sell off since pandemic days in March 2020
Satish Chandra Aluri,
Lemonn Markets Desk
Mumbai, April 4, 2025: Benchmark indices ended sharply lower on Friday after Trump tariffs raised risks of global recession as world equity markets witnessed worst sell off since pandemic days in March 2020. Broader Mid and Small caps also closed with heavy losses for the day.
Markets opened lower following worst losses overnight for US Wall Street indices since 2020 on widespread worries of recession as global trade flows got upended overnight with US tariffs, hitting every country. Japan equities fell into bear market with indices loosing ~10% this week itself. Markets steadily lost the ground throughout the day with Nifty 50 breaching 23000 support as Pharma and Healthcare stocks reversed yesterday’s gains and fell sharply after Trump announced that tariffs on them will be announced shortly. Losses accelerated in the noon after European markets opened with sharp losses. Among sectors, heavyweight Financials is the best performer with marginal gains, supported by Private banks, after strong quarterly business updates. Strength in Financials, somewhat helped cushion the fall in benchmarks. IT stocks extended their steep fall on US recession risks, posting worst weekly loss since pandemic in 5 years.
Markets will now look for RBI meeting and expected rate cut next week to support the growth in domestic economy while keeping a tab on any potential relaxation on trade tariffs as US recession risks mount. Start of Q4 earnings season in coming weeks will also be crucial factor in determining the broader direction for markets in coming weeks.
Technically, Nifty 50 closed at 22904 with 22800 acting as crucial support on the downside, while 23000 followed by 23200 are immediate resistance levels on upside. Bank Nifty posted modest losses closing near 51500 level. Expect 51000 to act as strong support zone on the downside, while 51800 will be immediate resistance.
