More Stories

Informist, Tuesday, Apr. 1, 2025

By Akash Mandal

MUMBAI – Analysts were divided on the direction equity indices may take Wednesday as there is still uncertainty over tariffs to be announced by the US. While most analysts believe the impact of the tariffs has already been priced in, they said uncertainty still looms regarding the quantum of the tariffs and the sectors it will affect.

Since the impact of the tariffs have already been discounted, indices are not expected to fall more after they are imposed, said Narendra Solanki, head of fundamental research at Anand Rathi Share & Stock Brokers. "Tariffs have been priced in for the near term...however, there is uncertainty on the intensity and the kind of tariffs for which we will have to wait for the announcement," Solanki said. He expects indices to rally briefly after the announcement as the market has heavily discounted the tariffs.

For Wednesday, indices may open lower but may recover to end higher Wednesday, said Anshul Jain, head of research at Lakshmishree Investment and Securities. "The Bank Nifty (Nifty Bank) might open 200 points lower and the Nifty 50 might open 80 points lower...however, momentum will pick up and there will be a recovery," Jain said.

The Nifty 50 ended at 23165.70 points, down 353.65 points or 1.5%, and the BSE Sensex closed at 76024.51 points, down 1390.41 points or 1.8%. Broader market indices were better off than their benchmark counterparts but ended 0.5-1.0% lower. Volatality was high in the market with the India VIX, which is the fear gauge for the market, rising over 8% to 13.78. For Thursday, analysts pegged the support for the 50-stock index at 23100-23000 points and the resistance at 23400 points.

Vipin Kumar, senior derivatives and technical research analyst at Globe Capital Market, said the market may move sideways after Tuesday's sharp fall. However, volatility might continue ahead of the tariff announcements by US President Donald Trump. "We are witnessing a short build up in Nifty, Finnifty and Midcap Nifty along with long unwinding in Bank Nifty," Kumar said.

After five straight days of net buying Indian equities, foreign investors turned net sellers Friday, selling equity worth INR 43.53 billion. Above-average reservoir levels, increase in rural wages, lower tax rates, and an improving job market are positives for the urban and rural economies, and are some of the main factors why foreign investors might be coming back into the Indian market, JM Financial said in a strategy report.

Among key data, US manufacturing purchasing managers' index for March is due later Tuesday, which will give an indication about the manufacturing industry and the overall health of the US economy.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.