AstraZeneca Eyes Strong Comeback
- 07th April 2025
Aaj Ka Bazaar
The US market turmoil deepened on Friday as China hit back at tariffs announced by President Donald Trump, raising the likelihood of an extended trade war that could cut into corporate profits and stall economic growth. Federal Reserve Chair Jerome Powell said in remarks at a business journalist conference that it is becoming clear that the tariff increases will be significantly more significant than expected. The same is likely true of the economic effects, including higher inflation and slower growth. Asian markets were deep in the red, with benchmark indexes in Australia, New Zealand, South Korea, China, Hong Kong and Japan falling 4-9 per cent. Indian market may follow global peers lower on Monday as tariff woes and fears of a recession weighed on risk assets, wiping out nearly $6 trillion in value from US stocks last week. Energy-related stocks may be in focus after the price of crude oil extended losses after plummeting to its lowest levels over three years on demand concerns.
Markets Around Us
BSE Sensex – 72,676.46 (-3.57%)
Nifty 50 – 22,072.50 (-3.63%)
Bank Nifty – 50,082.75 (-2.76%)
Dow Jones – 37,285.29 (-2.69%)
Nasdaq – 15,602.03 (-5.73%)
FTSE – 8,054.98 (-5.21%)
Nikkei 225 – 31,658.95 (-6.28%)
Hang Seng – 20,467.24 (-10.43%)
Sector: Pharma
AstraZeneca Eyes Gains After Drug Greenlight
AstraZeneca Pharma is likely to end its four-day losing streak on April 7 after receiving permission from India’s drug regulator (CDSCO) to import and sell its cancer drug Osimertinib (Tagrisso) for a new use. This approval allows the drug to be used in combination with chemotherapy as a first-line treatment for certain types of advanced lung cancer (NSCLC) with specific gene mutations. While the company still needs a few more statutory approvals, this marks a significant step in expanding its cancer treatment portfolio in India. The stock had recently fallen but is now showing signs of recovery. Over the past year, it has delivered a 55% return, with a 52-week high of ₹9,050 and a low of ₹5,000. It currently trades 12.6% below its peak. With a market cap of ₹19,771 crore, the stock remains one to watch closely, especially with strong momentum from this regulatory greenlight.
Why it Matters:
This approval expands AstraZeneca’s presence in India’s growing cancer treatment market. It also boosts investor confidence by potentially increasing future revenue. For traders, it signals a strong bounce-back opportunity after recent stock declines.
NIFTY 50 GAINERS
TORRENT PHARMA – 3298.95 (0.38%)
NIFTY 50 LOSERS
TRENT – 4728.45 (-15.00%)
TATA STEEL – 126.35 (-10.00%)
TATA MOTORS – 562.30 (-8.40%)
Sector : IT
IT Stocks Plunge Amid Escalating Trade Tensions
Nifty IT dropped 7% in early trade on April 7 as global markets tumbled and fears around US tariffs hit investor sentiment. Most Indian IT companies like Infosys, TCS, HCL Tech, and mid-caps like Coforge and Mphasis rely heavily on US clients for business. With US President Trump doubling down on tariffs, there’s worry that new deal wins from American firms may slow down, directly affecting their revenue. Infosys alone fell 10% while other IT stocks saw 6–9% dips. Global indices also crashed—Nasdaq futures dropped 5.45%, Nikkei fell 7.8%, and Hang Seng sank 10%. Overall, rising macro risks and global uncertainty have made investors cautious about the Indian tech sector. IT stocks have already dropped 6% in the last month and 20% in six months, eroding massive investor wealth. Experts warn that growth concerns and valuation risks could continue to impact the sector in the near term.
Why it Matters:
This matters because Indian IT companies depend heavily on the US for business, and any slowdown in deal flow due to tariffs can hurt their revenue and profitability. A steep fall in IT stocks reflects growing investor concern about global economic uncertainty and its impact on India’s tech sector. If this weakness continues, it could drag down overall market sentiment and impact investor portfolios significantly.
Around the World
Asian stock markets saw a major sell-off on Monday as fears of a full-blown global trade war intensified after U.S. President Trump announced steep tariffs on imports last week. Key indices in Japan, China, Hong Kong, South Korea, Singapore, and Australia dropped sharply, following a weak close on Wall Street. Trump’s move includes a 10% blanket import duty and up to 49% tariffs on specific countries, with China facing a combined 54% rate. In response, China hit back with 34% tariffs on U.S. goods. The back-and-forth has rattled global markets and raised concerns about a deeper slowdown in international trade. Japan’s Nikkei hit a 17-month low, China’s key indices hit six-month lows, and Australia’s benchmark fell to a one-year low. The Hang Seng in Hong Kong plunged over 9%. With U.S. futures also dropping, investors are worried markets could face another Black Monday-style crash as seen in 1987.
Option Traders Corner
Max Pain
Nifty 50 – 23000
Bank Nifty – 51300
Nifty 50 – 22992 (Pivot)
Support – 22,767, 22,634, 22,412
Resistance – 23,126, 23,349, 23,484
Bank Nifty – 51585 (Pivot)
Support – 51,277, 51,052, 50,744
Resistance – 51,810, 52,118, 52,343
Have you checked our latest YouTube Video
Did you know?
India’s Retail Investor Surge: Market Participation Hits Record Highs in 2024
India’s stock market has seen a 36% rise in retail participation, with over 50 million investors active by 2024. This surge is driven by increased financial literacy, digital trading platforms, and government initiatives. Systematic Investment Plans (SIPs) have also gained popularity, with monthly contributions hitting ₹14,000 crore in early 2025. These trends reflect growing confidence in India’s equity markets.
