Markets tank on Trump's bitter pharma pill; Sensex ends 930pts lower

Pharma shares, which had outperformed in the markets on Thursday, fell sharply on Friday, dropping over 4 per cent after Trump said he is looking at never-before-seen tariffs on pharmaceuticals

Stock market closing bell, Friday, April 4, 2025: The withdrawal of investors from domestic equity markets became severe on the second day after the announcement of reciprocal tariffs by US President Donald Trump. The benchmark equity indices, BSE Sensex, and Nse Nift50, witnessed a sharp correction on Friday and ended the week's last trading session with a loss of over 1 per cent each, weighed down by selling across the counters amid fears of potential trade war.

 

The sharp fall in global markets—particularly in the US—and fresh concerns over potential tariffs on pharmaceuticals, analysts said, negatively impacted sentiment.

 

The BSE Sensex tanked 930.67 points or 1.22 per cent to settle at 75,364.69 on Friday. The NSE Nifty 50 plunged 345.65 points or 1.49 per cent to close at 22,904.

 

 

From the Sensex pack, Tata Steel, Tata Motors, Larsen & Toubro, Adani Ports, and IndusInd Bank were the top laggards, falling in the range of 3.7 to 8.62 per cent on Friday. The index heavyweight Reliance Industries tanked 3.5 per cent.

 

The broader markets also took a hit, with small-cap and mid-cap stocks ending down by up to 3 per cent.

 

The selling was more pronounced among the sectors, with metal, IT, and pharma counters facing the brunt. The Nifty Metal index was the top laggard, ending down by 6.56 per cent.

 

Nifty Pharma index, which had outperformed in the markets on Thursday, fell sharply on Friday, dropping over 4 per cent after Trump said his administration is looking at never-before-seen tariffs on pharmaceuticals. Following the update, 18 out of 20 constituents of the Nifty Pharma index, including Laurus Labs, Granules, and IPCA Labs, plunged up to 7 per cent.

 

The recent implementation of higher-than-anticipated US tariffs, Vinod Nair, head of research at Geojit Investments, said, has had a significant impact on global markets, triggering a bearish trend as investors assess the broader implications. The likelihood of retaliatory measures against the US has further heightened uncertainty. US bond yields and oil prices are trending downward, reflecting concerns over potential economic slowdown and increased recessionary risks.

 

Meanwhile, the Nifty IT index settled lower by 3.58 per cent, dragged by Coforge, Mphasis, and LTIMindtree, which fell by up to 7.2 per cent. On the other hand, the Financial Services and FMCG sectors managed to eke out marginal gains of up to 0.20 per cent.

 

That said, sustained strength in banking and financial stocks, according to Ajit Mishra – SVP, research, Religare Broking, helped limit the overall downside to some extent. Looking ahead, Mishra anticipates a time-wise correction in the Nifty index.

 

Notably, out of 1,947 stocks traded on the NSE, 2,230 posted declines, 646 advanced, while 71 remained unchanged on Friday. On a weekly basis, the Sensex and Nifty registered losses of nearly 2.6 per cent each.

 

Nifty faces tests resistance at 23,100  

The Nifty50, Rupak De, Senior Technical Analyst at LKP Securities, said, 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," De said. "On the higher end, resistance is seen at 23,100." De expects a move above 23,100 to provide a clear signal for a strong uptrend.