Indian markets trimmed most of their losses in early afternoon session but continued to trade in red. Investors’ attention has shifted to the RBI’s monetary policy meeting. Traders were cautious as India's services sector growth momentum rose at the softest pace in 14 months in March, mirroring the slowdown in new business intakes. The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 58.1 in February to 57.5 in March, amid the weakest rises in new business and activity since January 2025. Besides, Moody's Ratings in its credit opinion report on India has cut India's economic growth estimates for the current fiscal (FY27) to 6% from an earlier 6.8%, noting that ongoing conflict in West Asia will moderate growth momentum and raise inflation risks.

On the global front, Asian markets were trading mostly in green despite US President Donald Trump’s renewed threats to bomb Iranian civilian infrastructure. 

The BSE Sensex is currently trading at 73263.44, down by 56.11 points or 0.08% after trading in a range of 72728.66 and 73588.75. There were 15 stocks advancing against 14 stocks declining on the index, while 1 stock remained unchanged.  

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.52%, Realty up by 0.97%, Consumer Discretionary up by 0.91%, Metal up by 0.76% and IT was up by 0.75%, while Oil & Gas down by 1.79%, Energy down by 1.56%, Healthcare down by 0.34% and FMCG was down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Trent up by 6.74%, Titan Company up by 3.37%, Axis Bank up by 2.06%, HDFC Bank up by 1.14% and Bharat Electronics up by 1.04%. On the flip side, Reliance Industries down by 4.05%, Interglobe Aviation down by 1.53%, Adani Ports down by 1.17%, Sun Pharma down by 1.08% and Hindustan Unilever down by 0.95% were the top losers.

Meanwhile, after US president Donald Trump imposed 100% ad valorem duty rate on the import of certain patented pharmaceuticals and associated pharmaceutical ingredients, on April 2, the think tank Global Trade Research Initiative (GTRI) said that the decision is unlikely to significantly impact India, given its dominance in low-cost generic drug exports to the US. The decision followed the Section 232 investigation launched on May 1, 2025, which cited national security risks from dependence on foreign drug supplies. GTRI pointed that over 90% of US drug use are generic medicines and are exempted from this order, likely for about a year, to avoid shortages and price increases. In 2025, India exported $9.7 billion worth of pharmaceuticals to the US, accounting for 38% of its global pharma exports of $25.8 billion.

However, GTRI noted that Indian firms producing branded or speciality drugs, or supplying inputs for patented medicines, could face tariff pressure. The tariffs will mainly affect Ireland, Germany, Switzerland, Belgium, Denmark, the United Kingdom and Japan, which are major exporters of patented and high-value drugs, including biologics, to the US. Further, the order does not exempt countries with trade arrangements with the US, including the European Union and Japan. Besides, the future uncertainty about tariffs being extended to generic medicines is remain a larger concern. It added that the order timing, issued on the first anniversary of the earlier ‘Liberation Day’ tariff push, signals a continuation of Washington's aggressive trade strategy. The US had announced sweeping tariffs on about 60 countries, including India, on April 2, 2025.

GTRI highlighted that Washington is likely to rely more heavily on tools such as Section 232 of the Trade Expansion Act of 1962 (national security) and Section 301 of the Trade Act of 1974 (foreign trade barriers) to justify tariffs on a wide range of products and countries, as the US Supreme Court struck down reciprocal tariffs. Moreover, it pointed that this creates a deeper problem for trading partners, even the countries who sign trade deals with the US, as they are not insulated from such actions. These investigations can still be launched irrespective of existing agreements.

The CNX Nifty is currently trading at 22700.80, down by 12.30 points or 0.05% after trading in a range of 22542.95 and 22798.25. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Trent up by 6.74%, Titan Company up by 3.39%, Coal India up by 2.59%, Axis Bank up by 2.09% and Shriram Finance up by 1.93%. On the flip side, Reliance Industries down by 4.06%, ONGC down by 1.86%, JSW Steel down by 1.84%, Interglobe Aviation down by 1.50% and Max Healthcare Inst down by 1.38% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 436.51 points or 0.81% to 53,560.00, KOSPI increased 73.03 points or 1.34% to 5,450.33 and Straits Times was up by 18.04 points or 0.36% to 4,965.54. On the flip side, Jakarta Composite was down by 35.95 points or 0.51% to 6,990.83.