Indian stock market stays strong despite tariff worries: Experts

The Indian stock market closed lower on Thursday, reflecting the impact of reciprocal tariffs imposed by the US on its trading partners, including India. Despite the dip in key indices, broader markets remained resilient, with midcap and smallcap stocks showing strength.

Market Overview

The Nifty 50 ended at 23,250.10, down 82.25 points (0.35%), while the Sensex dropped 322.08 points (0.42%) to settle at 76,295.36. Sectoral performance was mixed, with pharma and public sector banking stocks leading the gains, whereas the IT and auto sectors struggled.

Top Gainers and Losers

Among the top performers were Power Grid Corp, Sun Pharma, UltraTech Cement, Cipla, and Shriram Finance. On the losing end, IT heavyweights such as TCS, HCL Technologies, Tech Mahindra, Infosys, and ONGC witnessed declines.

The pharma sector saw a 5% surge in the Nifty Pharma index, driven by tariff exemptions on pharmaceutical products. Conversely, the IT sector dropped 3%, weighed down by concerns over increased trade barriers.

Market Outlook for April 4, 2025

According to Osho Krishan, Senior Analyst at Angle One, "Nifty opened lower but managed to recover within the first hour, erasing most of its early losses. The index traded within a narrow range before closing just above the 23,250 mark."

Technically, Nifty has formed matching lows around the 23,100 level over the past three sessions, aligning with the 20-day and 50-day exponential moving averages (DEMAs) and the 38.2% Fibonacci retracement from March’s rally that began at 22,000.

Jatin Gedia, an analyst from Mirae Asset Sharekhan, emphasized that "The 23,100 support level has held firm despite bearish sentiment. A decisive break below this could shift momentum in favor of the bears." As of now, the index is expected to trade in a range between 23,000 and 23,650.

Key Levels to Watch

Support: 23,100

Immediate Resistance: 23,350

Major Resistance: 23,600

Upside Potential: A breakout above 23,600 could propel Nifty towards 24,000–24,100.

Final Thoughts

Despite concerns surrounding US tariffs, broader market strength and stock-specific movements suggest potential opportunities for traders. Analysts recommend watching for dips as long as the 23,100 level holds, as they may present buying opportunities.

Disclaimer: This article is for informational purposes only. Investors should conduct their own research and consult financial experts before making investment decisions.