The stock market fell today i.e. on April 3. The Sensex closed at 76,295 with a fall of 322 points. Nifty also fell by 82 points and closed at 23,250. Out of the 30 Sensex stocks, 18 fell and 12 rose. Today, IT, auto and banking stocks fell the most. Shares of TCS, HCL Tech and Tech Mahindra fell by about 4%. Power and pharma stocks rose on the other hand.
Decline in Asian markets
In Asian markets, Japan’s Nikkei fell by 2.77%, China’s Shanghai Composite fell by 0.24% and Hong Kong’s Hang Seng index fell by 1.52%.
On April 2, America’s Dow Jones closed 0.56% higher at 42,225. The Nasdaq Composite rose 0.87%, while the S&P 500 index closed up 0.67%.
On April 2, foreign investors (FIIs) sold shares worth Rs 1,538 crore. At the same time, domestic investors (DIIs) bought shares worth Rs 2,808 crore.
Key Reasons Behind the Market Decline
Trump’s Reciprocal Tariff: America has announced to impose 26% tariff on India. Apart from India, 34% tariff will be imposed on China, 20% on European Union, 25% on South Korea, 24% on Japan, 46% on Vietnam and 32% on Taiwan.
Selling by foreign investors: Foreign Institutional Investors (FIIs) are continuously withdrawing money from the Indian stock market. This selling can be a major reason for increasing pressure in the market, especially if investors are turning to other markets.
Economic uncertainty: Fears of a global economic recession and the US GDP forecast to fall by 2.8% in the first quarter of 2025 have reduced investor confidence. This is increasing volatility in the stock market.
