Get detailed insights on top Stocks, sector trends, and how FMCG held strong amid market pressure
The Indian stock market closed sharply lower on Friday, April 4, 2025, with benchmark indices posting significant losses as profit-booking and sectoral weakness weighed on investor sentiment. Despite a strong showing by banking and FMCG stocks, the broader market remained under pressure due to a steep decline in pharmaceutical stocks.
Market Overview
The Sensex ended the day at 75,623.86, shedding 671.50 points, a decline of 0.88%. The Nifty 50 mirrored the bearish tone, slipping 273.50 points or 1.18% to close at 22,976.60. Intra-day data showed the Nifty dipping to 22,970.80, registering a total loss of 279.30 points, or 1.20%, by the close.
While most sectors traded in the red, the banking segment displayed resilience. The Nifty Bank index gained 68.20 points, or 0.13%, to settle at 51,665.55, supported by strong buying in key private banks.
Biggest Gainer and Loser
HDFC Bank led the gainers’ chart. Its stock rose by ₹39.90, or 2.22%, to close at ₹1,834.75. Traders increased exposure to banking stocks after analysts issued bullish commentary on the sector’s improving asset quality and credit growth.
On the flip side, ONGC took the hardest hit. The stock plunged ₹15.68, or 6.44%, to close at ₹227.63. Weak global crude oil prices and concerns around upstream margin pressures triggered heavy selling in the stock.
Sectoral Snapshot
The market registered mixed action across sectors. The Nifty FMCG index emerged as the top performer, rising 89.85 points, or 0.17%, to close at 53,896.60. Traders favored FMCG counters for their defensive nature amid market volatility.
The worst-hit sector of the day, Nifty Pharma, saw a steep fall. It dropped 1,241.25 points, or 5.79%, to settle at 20,182.30. A combination of weak quarterly guidance, regulatory setbacks, and margin compression across key pharma players drove the decline.
Market Breadth and Volatility
The market breadth skewed sharply in favor of bears. Declining stocks outnumbered advancing ones across both the NSE and BSE. Volatility surged as the India VIX jumped nearly 8%, reflecting rising nervousness among traders ahead of the earnings season and global uncertainty.
High trading volumes indicated strong participation, but the trend favored exits over fresh buying. Midcap and smallcap indices also closed in the red, registering average losses between 1.5% and 2%, further confirming broad-based selling pressure.
Key Drivers Behind the Decline
Several key triggers contributed to the negative sentiment in the stock market today:
Global Cues: Weakness in global equities due to renewed trade tensions between the U.S. and China unsettled investors. Asian and European markets opened lower, which influenced domestic traders to reduce risk.
Profit Booking: After hitting all-time highs earlier in the week, benchmark indices faced sharp profit-booking. Traders opted to lock in gains ahead of upcoming earnings reports from major companies.
Pharma Sector Crash: Pharma stocks faced a major rout after regulatory bodies in the U.S. raised compliance flags against two leading Indian manufacturers. Concerns around pricing pressure in the U.S. generics market also weighed on sentiment.
Rupee Depreciation: The Indian Rupee weakened against the U.S. Dollar, which impacted foreign inflows and prompted selling by foreign institutional investors (FIIs). FIIs turned net sellers in equities today, adding pressure to frontline indices.
Banking Sector Stands Strong
The banking index managed to buck the trend, largely due to buying in frontline private sector banks. HDFC Bank, Axis Bank, and ICICI Bank registered gains, supported by improving credit growth data and robust commentary from recent analyst meets.
Traders took positions in banking counters, expecting strong Q4 results driven by stable net interest margins (NIMs) and lower provisioning.
FMCG Stocks Attract Interest
FMCG counters attracted buying interest as investors sought shelter in defensives. Stocks like ITC, Nestle India, and Dabur traded in the green. Despite broader market weakness, these companies showed stability due to consistent consumption patterns and their lower beta nature.
Technical View: Nifty and Sensex
Nifty 50 faced heavy resistance near the 23,300 level and broke key support zones around 23,100 during intraday trade. It eventually closed below 23,000, a psychologically important mark. Chartists observed a bearish engulfing pattern forming on the daily charts, which could signal more downside in the coming sessions.
Key support levels for Nifty stand at 22,850 and 22,700, while resistance remains near 23,150 and 23,300. The Sensex also closed below its 5-day and 10-day moving averages, indicating short-term weakness.
Stocks in Focus
Dr. Reddy’s Laboratories, Sun Pharma, and Lupin all faced sharp declines ranging from 5% to 7%, following concerns over U.S. FDA observations and weak outlooks for generic sales.
Infosys and TCS declined around 1%–2% amid weak guidance from global tech majors and anticipation of soft Q4 IT sector results.
Reliance Industries saw mild profit-booking and closed 0.9% lower. Traders booked gains after a strong rally over the past week.
Outlook for Next Week
The market faces a critical week ahead. Quarterly earnings for key Nifty companies will begin rolling in, and traders will assess management commentary closely. Market participants expect elevated volatility due to macroeconomic triggers such as crude oil price movements, foreign fund flows, and global central bank cues.
While the banking sector holds promise due to strong fundamentals, sectors like pharma may stay under pressure until clarity emerges on regulatory issues and margin recovery.
Technical analysts advise caution near resistance levels and recommend watching for strong support before re-entering the market. Investors may rotate allocations toward defensives and high-dividend-yield stocks to reduce risk exposure.
The Indian stock market ended lower on April 4, 2025, driven by heavy losses in the pharmaceutical sector and weak global cues. Despite support from banking and FMCG stocks, the overall mood remained cautious. With Nifty closing below the 23,000 level, near-term sentiment turned slightly bearish.
Market participants will closely monitor corporate earnings and global developments to gauge the next directional move. Volatility may persist, but sector rotation and strong fundamentals in select pockets could offer opportunities.
