Nifty Prediction Tomorrow, April 03, 2025: Fire In Indian Stock Market On April 3 After Donald Trump's Tariffs?

Nifty Prediction Tomorrow, April 03, 2025:  Indian markets rallied on Wednesday, led by advances in IT and banking sectors, as investors awaited US President Donald Trump 's verdict on reciprocal tariffs.

With these tariffs set to affect all nations, including India, market investors are looking at the implications amid fears of a global trade war.

Stock Market Today, April 02, 2025

The Sensex rose 592 points to 76,617.44, while the Nifty50 advanced 166.65 points to 23,332.35.  On the daily charts, the Nifty managed to maintain its critical support zone of 23,150-23,100, showing buying interest ahead of the major global event.

According to Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, “We expect Nifty to consolidate within the 23,000–23,650 range with high intraday volatility. A move beyond 23,600 could signal a resumption of the next leg of up move towards 24,000–24,200.”

All sectoral indices ended in the green, with FMCG, Consumer Durables, and Realty stocks witnessing gains of 1–3%. BSE midcap and smallcap indices climbed nearly 1% each.

Key gainers included HDFC Bank, ICICI Bank , Infosys, Bharti Airtel, Zomato , Titan Company, IndusInd Bank, and Maruti Suzuki . Among the losers were Reliance Industries, UltraTech Cement, Nestle India, Power Grid Corporation, and L&T.

Impact of Tariffs on Indian Exports

India exports approximately 17% of its total exports to the U.S., making various sectors such as gems and jewellery, agriculture, chemicals, electronics, and IT services vulnerable to heightened tariffs.

Sugandha Sachdeva, Founder of SS WealthStreet, notes, “Indian exports could face disruptions depending on the severity of the tariffs announced today. Sectors like auto parts may see significant impacts due to the 25% tariff on automobile-related products effective from April 3.”

While India does not export substantial volumes of automobiles, auto parts remain a major component and are likely to be affected. Agriculture and manufacturing products, including processed foods and electronics, may also face a challenging landscape in the U.S. market.

How Nifty Will Perform Tomorrow?

The outcome of Trump’s tariff announcement will determine the way of Indian markets in the coming days.

Sugandha Sachdeva adds, “Should there be relaxation in tariffs on India, we could witness a relief rally with Nifty showing upside momentum toward 23,550–23,650 levels. However, resistance remains strong in the 23,650–23,800 zone. On the downside, if severe tariffs are imposed, Nifty could breach the 23,120 mark and slip toward 22,500 or lower in the days ahead.”

With the RBI policy meeting scheduled next week and expectations of a rate cut, markets may find support once this event risk subsides. Investors are also closely monitoring key global indicators like U.S. unemployment data and non-farm payrolls, due this Friday, which could influence market sentiment further.

Other Factors to Watch

Crude oil prices have shown an uptick, with Brent crude trading at $74.50 per barrel and WTI crude at $71.23 per barrel. Sugandha notes, “If there’s a major jump in crude oil prices, it could hurt Indian markets tomorrow.”

The Indian rupee also depreciated by 23 paise to 85.73 against the U.S. dollar, adding to the macroeconomic factors influencing market sentiment.

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