After starting the day on a negative note, the benchmarks dragged further as the session progressed and ended the day on a weak note.

Indian equity markets continued to witness a sell-off for the second consecutive session following US President Donald Trump's reciprocal tariff announcements.

At the closing bell, the BSE Sensex stood lower by 931 points (down 1.2%).

Meanwhile, the NSE Nifty closed lower by 346 points (down 1.5%).

HDFC Bank, Nestle, and Apollo Hospital were the top gainers today.

Cipla, ONG,C, and Hindal, on the other hand, were among the top losers today.

The GIFT Nifty ended at 22,953, down by 361 points.

The BSE Mid Cap ended 3.1% lower, and the BSE Small Cap index ended 3.4% lower.

Sectoral indices are trading on a negative note, with stocks in the energy sector, metal sector, and oil & gas sector witnessing selling pressure.

The rupee is trading at 85.2 against the US$.

Gold prices for the latest contract on MCX are trading 0.5% lower at Rs 89,655 per 10 grams.

Meanwhile, silver prices are trading 1.8% lower at Rs 92,699 per 1 kg.

Here are four reasons why Indian Markets are falling today

#1 Pharma Sector Tariff

According to reports, US President Donald Trump is weighing the possibility of imposing steep tariffs on the pharmaceutical sector, warning that the tariffs could reach levels "no one has really seen before."In response, the Nifty Pharma index tumbled 6% intraday, with some individual pharma stocks plunging as much as 6.2%.

#2 Selling in Heavyweights

Shares of index heavyweight Reliance Industries dropped over 4% on the BSE today, hitting an intraday low of Rs 1,192.85 and putting considerable pressure on the broader market.With a weight of 11.25% in the Sensex, Reliance alone contributed to nearly half of the benchmark index's decline.

The sharp fall in RIL shares followed a steep drop in global crude prices, as Brent and WTI futures plunged around 7% overnight on Thursday amid concerns over weakening demand.WTI crude slipped to $66 per barrel, while Brent crude dropped to US$ 70 per barrel.

#3 Profit Booking

Apart from Reliance Industries, several other large-cap stocks came under pressure amid a broader market sell-off. Notable losers included Tata Steel, Tata Motors, L&T, IndusInd Bank, Sun Pharma, Tech Mahindra, Adani Ports, HCL Tech, Infosys, TCS, Maruti Suzuki, NTPC, Asian Paints, and Titan - with declines ranging between 1% and 6%.

Among them, Tata Steel, Tata Motors, and major IT companies bore the brunt of the selling, largely due to their significant exposure to export markets such as the US, UK, and Eurozone.

#4 Weak Global Cues

Asian market investors were looking for cover as key benchmark indices in the region plummeted for a second straight day, fearing a global trade war in the aftermath of Trump's tariffs, and a recession in the US due to higher inflation and slower growth.

Japan stocks were the worst hit with the Nikkei index down 3%. Australia's S&P/ASX 200 fell 2.4%.
 

Why Metal Stocks are Falling

In news from the metal sector, metal stocks took a sharp hit on Friday, with several counters plunging as much as 12%, as fears of a global economic slowdown intensified following fresh US tariff announcements. Investor sentiment weakened amid rising concerns over inflation and recession risks in the US.

Vedanta dropped up to 8.2%, Tata Steel declined 6.5%, while National Aluminium and Hindalco Industries saw their shares tumble 12.2% and 6.9%, respectively.

The sell-off followed US President Donald Trump's announcement of sweeping tariffs on imports from all trading partners.

While the base tariff was set at a minimum of 10%, higher rates were imposed on countries with larger trade deficits. India, in particular, was hit with a steep 27% import tariff, affecting sectors such as pharmaceuticals and energy goods.
 

Bajaj Finance Shares Gain 2%

Moving on to the news from the finance sector, Bajaj Finance shares rose 2.3% on Friday logging an intraday high at Rs 8,796.7 per share on BSE. The buying on the counter came after the company reported its Q4 business update.

Bajaj Finance released its fourth quarter ended March 31, 2025, update on Thursday, after market hours.

In Q4, the company said its customer franchise as of March 31, 2025, stood at 101.82 MM as compared to 83.64 MM as of March 31, 2024. In Q4 FY25, the customer franchise increased by 4.70 MM.

Why Oil Stocks are Falling

Moving on, shares of upstream oil companies such as ONGC, Reliance Industries (RIL), and Oil India dropped by up to 7.2% on Friday, 4 April 2025, following a sharp decline in global crude oil prices, which fell below US$ 70 per barrel.

The fall in crude prices directly impacts the earnings of upstream oil producers, whose revenues depend heavily on the market price of crude oil. Lower crude prices reduce income from oil production, thereby affecting profitability.

Adding to the pressure, US President Donald Trump introduced a fresh round of reciprocal tariffs aimed at boosting domestic manufacturing.

He claimed the move was necessary to counter years of "unfair trade practices" by countries that have imposed high tariffs and trade barriers on US goods, limiting America's access to global markets.

More By This Author:

Sensex Today Trades Lower; Nifty Below 23,150
Sensex Today Ends 322 Points Lower; Nifty Below 23,300
Sensex Today Trades Lower; Nifty Below 23,300; HCL Tech Down 3%