The domestic equity benchmarks ended with major losses today, declining for the second consecutive session. The losses were driven by weak global cues and U.S. President Donald Trump's broad tariff announcements, which heightened concerns about a potential global recession. The Nifty ended below the 22,950 mark.

The barometer index, the S&P BSE Sensex tanked 930.67 points or 1.22% to 75,364.36. The Nifty 50 index dropped 345.65 points or 1.49% to 22,904.45. In the past two trading sessions, the Sensex and Nifty dropped by 1.64% and 1.83%, respectively.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index tumbled 3.08% and the S&P BSE Small-Cap index slumped 3.43%.

The market breadth was weak. On the BSE, 1,139 shares rose and 2,801 shares fell. A total of 136 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 1.13% to 13.76.

Among the sectoral indices, the Nifty Metal index (down 6.56%), the Nifty Pharma index (down 4.03%) and the Nifty IT index (down 3.58%) were underperformed the Nifty50 index.

On the other hand, the Nifty FMCG index (up 0.04%), and the Nifty Private Bank index (down 0.13%) were outperformed the Nifty50 index.

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.

Numbes to Track:

The yield on India's 10-year benchmark federal paper was up 1.18% to 6.576 as compared with previous close 6.480.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.3075, compared with its close of 85.5200 during the previous trading session.

MCX Gold futures for 5 May 2025 settlement fell 0.05% to Rs 89,720.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.55% to 102.10.

The United States 10-year bond yield tumbled 4.29% to 3.881.

In the commodities market, Brent crude for June 2025 settlement fell $4.28 or 6.10% to $65.86 a barrel.

Global Markets:

US Dow Jones index futures tumbled 921 points, signaling a weak opening for Wall Street.

European shares tumbled while Asian stocks ended lower on Friday, mirroring the steep declines in U.S. equities overnight after the announcement of new U.S. tariffs. Markets in Hong Kong and China were closed in observance of the Qingming Festival.

On Wednesday, U.S. President Donald Trump introduced a new tariff policy applying reciprocal rates to over 180 countries and territories. The move has heightened concerns of a potential global trade conflict, prompting a broad-based sell-off in equities.

Overnight in the U.S., the three major averages plummeted. The S&P 500 slid back into correction territory, dropping 4.84% to 5,396.52. The Dow Jones Industrial Average tumbled 1,679.39 points, or 3.98%, to close at 40,545.93 and the Nasdaq Composite fell 5.97% to end at 16,550.61, logging its biggest decline since March 2020.

Apple Inc. shares declined more than 9% amid investor concerns over the impact of the new 54% tariff on Chinese imports. As Apple relies heavily on Chinese manufacturing and global supply chains, the tariffs are expected to increase production costs, potentially pressuring profit margins or leading to higher consumer prices.

Retailers were also hit hard, with Nike Inc. stock falling more than 14%. Meanwhile, plane maker Boeing Co. shares declined 11%. Tesla Inc. shares closed 5.5% lower, while NVIDIA Corporation lost 8%.

Investors are now focused on the upcoming U.S. payrolls report and a speech from Federal Reserve Chair Jerome Powell for further insight into the labor market and potential implications for monetary policy.

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