SENSEX DROPS 685 PTS; IT SHARES TUMBLES

The headline equity indices traded with significant losses in the early-afternoon trade, tracking a massive sell-off in U.S. markets triggered by U.S. President Donald Trump`s reciprocal tariff announcement, which heightened concerns about a potential recession. The Nifty traded below the 23,000 level. IT shares extended losses for the second consecutive trading session.

At 12:28 IST, the barometer index, the S&P BSE Sensex, tanked 684.71 points or 0.89% to 75,613.47. The Nifty 50 index dropped 259.95 points or 1.12% to 22,990.15.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index slumped 2.75% and the S&P BSE Small-Cap index declined 2.98%.

The market breadth was weak. On the BSE, 1,003 shares rose and 2,748 shares fell. A total of 152 shares were unchanged.

Economy:

The HSBC final India Services Purchasing Managers` Index, compiled by S&P Global, fell to 58.5 last month from 59.0 in February but was higher than a preliminary estimate that showed a fall to 57.7. However, it remained comfortably ahead of the 50-mark separating contraction from growth.

The HSBC India Composite PMI, which included robust manufacturing growth, rose to a seven-month high of 59.5 in March from February`s 58.8, reflecting stronger overall private sector growth. Manufacturing growth outpaced services, but both sectors saw moderating employment growth and business confidence.

Pranjul Bhandari, chief India economist at HSBC, said, "India recorded a 58.5 services PMI in March 2025, softening slightly from the month prior. Domestic and international demand remained fairly buoyant, despite being sequentially a tick lower than the month before. Meanwhile, job creation and charge inflation both cooled during March. Looking ahead, business sentiment remains generally positive, but intensifying competition presents a significant challenge to many survey participants."

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 0.79% to 13.71. The Nifty 24 April 2025 futures were trading at 23,045.90 at a premium of 55.75 points as compared with the spot at 22,990.15

The Nifty option chain for the 24 April 2025 expiry showed a maximum call OI of 49.2 lakh contracts at the 23,500 strike price. Maximum put OI of 45.4 lakh contracts was seen at 23,500 strike price.

Buzzing Index:

The Nifty IT index dropped 3.07% to 33,691.20. The index tumbled 7.12% in two consecutive trading sessions.

Coforge (down 6.17%), Persistent Systems (down 6.02%), Mphasis (down 4.38%), LTIMindtree (down 4.27%), Wipro (down 3.41%), Tech Mahindra (down 3.01%), HCL Technologies (down 2.69%), Tata Consultancy Services (down 2.42%), Infosys (down 2.32%) and Oracle Financial Services Software (down 1.19%) declined.

Stocks in Spotlight:

Bharat Global Developers hit a lower circuit of 5% after the company informed that Mohsin Shaikh has tendered his resignation from the position of chief executive officer (CEO) of the company, effective from 03 April 2025.

L&T Finance declined 1.16% after the firm announced that its retail disbursements for Q4 FY25 were Rs 14,870 crore, registering a degrowth of 1.16% compared to Rs 14,531 crore recorded in Q4 FY24.

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