Stock Market Weekly Wrap: ₹3 Lakh Crore Investor Loss, FIIs Exit, Metal Index Drops 4%

Stock Market Wrap Up of the Week: Tension over Trump’s Tariff, FIIs Disinvest, and ₹3 lakh Crore is Wiped Out

The Indian stock market registered losses for the second week consecutively from April 7 to April 11. The losses were attributed to the uncertainty revolving around Trump’s trade policy changes. From the middle of the week onward, markets managed to mitigate some losses after Trump suspended the new “reciprocal” tariffs on all countries, excluding China, for 90 days.

On Friday, Nifty 50 surged 1.92% to 22,828.55 and BSE Sensex was up 1.77% at 75,157.26. Nonetheless, the gains on Friday were not sufficient to prevent both indices from experiencing a weekly loss of 0.3%.

US-China Trade War Continues to Create Worrying Sentiment

Rising conflict between the US and China is still a major concern for investors. Following the jump in duties on Chinese commodities, China retaliated by placing 125% tariffs on American imports. The tit-for-tat nature of this trade war is fostering fears for markets globally.

Why Metal and Realty Got Bashed

In the current week, metals and real estate sectors sustained the most damage. Nine out of 13 key sector indices closed in the negative zone, as the economic performance on the whole was stagnating. The real estate index lost 4% and the metal index lost 2.9%. Alongside these two, Financial and IT sectors also faced declines of 0.9% and 2.3% in this order. This marks second week losses for all four sectors.

IT stocks took a dive due to fears that the ongoing trade war may spiral the US economy into a recession, which would have devastating impacts on Indian IT firms as the US is their primary market. Simultaneously, the broader midcap index marked its 3rd weekly drop in a row, declining by 0.3%, while the smallcap index gained marginally by 0.2%.

Investors Shed off ₹3 Lakh Crore in a Week

This fall in the stock market has caused significant damage to investors. A fresh estimate shows that companies listed on the BSE suffered a market capital even further sinking it to 401.55 lakh crore after starting at 404.09 after April 4, translating to a loss of 2.54 lakh crore in under a week.

April Sees ₹32,122 Crore Exit From Foreign Investors

Foreign Instutional Investors (FIIs) have withdrawn ₹32,122.76 crore from Indian equity market in less than 7 trading days of April. On the other hand Domestic Instutional Investors (DIIs) put in an aggregate of 23,828.91 crore in the same timeframe. Due to the apprehensions triggered by Trump’s tariff war and China’s response, FIIs seem to be exercising a heightened sense of caution.

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Major Factors Shaping The Market This Week

• US China Trade Wars: Escalating trade conflicts between brace the US and China led to losses for Indian Markets as well. The Indian stock market on Monday in addition slumping from trade wars witnessed sharp decline and closed with losses as well.
• Pullout by FIIs: Renewed trade conflict concerns made foreign FIIs reduce their stakes in Indian equities. This caused the pullout of over 32,000 crore for the Indian market in April so far.
• RBI Rate Reduction: Reserve Bank of India’s (RBI) rate cut to 6.0% from the 0.25% on the Repo rate was another highlighted news of the week. Previously, In February, RBI set it to 6.25%. Marlet did not show much activity after the news as it was anticipated.