Delhivery tanks 7%, Kanani crashes 8.5%: What triggered the stock market slide on April 8?

Indian equities experienced broad-based declines on April 8, 2025, as traders responded to deepening global trade tensions, a weakening rupee, and speculation over the Reserve Bank of India‘s next policy move. The selloff was particularly pronounced across mid-cap and small-cap segments, with stocks such as Delhivery Limited, Stove Kraft Limited, and Kanani Industries Limited witnessing sharp corrections.

Among the twenty biggest losers of the day, companies from diverse sectors including logistics, consumer goods, financial services, and infrastructure posted losses ranging between 5% and 8.5%. The correction came amid mounting concerns that India could face external headwinds linked to tariff escalations and capital outflows, even as domestic macroeconomic indicators suggested growing pressure on industrial production and currency stability.

How did global trade tensions and a weakening rupee contribute to the market drop?

The Indian rupee’s fall to 86.2650 against the U.S. dollar on April 8, its lowest level in more than two weeks, was one of several indicators that pointed to growing nervousness in the market. This depreciation was partly driven by global currency shifts, including a sharp decline in the Chinese yuan, but it also reflected heightened demand for dollars from Indian importers.

This currency pressure added to an already fragile investor mood, exacerbated by recent trade policy moves from the United States. Under the leadership of President Donald Trump, the U.S. administration unveiled a sweeping new tariff structure targeting several Asian economies, including a 26% tariff on Indian goods. Although the pharma sector was exempted, key industries such as electronics, jewellery, and logistics, which have substantial export exposure, are expected to be significantly affected.

These developments came at a time when global investor sentiment was already tilting toward risk aversion, with capital moving away from emerging markets and into safe-haven assets. Indian equity markets, deeply reliant on foreign institutional inflows, responded swiftly to these pressures, with investors seeking to reduce exposure in export-heavy and rate-sensitive sectors.

Which stocks recorded the steepest losses and what drove their performance?

Leading the pack of top losers, Kanani Industries Limited, a company heavily involved in jewellery exports, saw its share price fall 8.50% to close at ₹2.26. The stock had opened at ₹2.67, and trading volumes crossed 16.76 lakh shares. The gems and jewellery segment has historically been sensitive to external tariffs and regulatory changes, especially in the U.S. market, where India is a dominant supplier. The announced tariff increase on jewellery imports from India raised alarms over export prospects and profitability margins, fueling the stock’s slide.

Delhivery Limited, a major logistics and e-commerce fulfillment player, dropped 7.04% to ₹249.45, with more than 2.40 crore shares traded, representing nearly ₹610 crore in transaction value. As a company that thrives on cross-border shipping and supply chain optimization, Delhivery is particularly vulnerable to disruptions in global freight flows. With trade restrictions looming, investors appear to have priced in expectations of slower volume growth and potential margin compression.

Stove Kraft Limited, a leading manufacturer of kitchen appliances and cookware, lost 6.48% to end at ₹643.00. The company, known for brands such as Pigeon and Gilma, is exposed to both rural demand trends and input cost pressures. Recent data suggesting weakening rural consumption, coupled with inventory overhangs, has pushed sentiment into negative territory.

Textile company Precot Limited also saw a sharp drop of 6.64% to ₹362.30. The broader textile sector has faced hurdles due to falling demand from key export markets and increasing raw material costs. India’s textile players have been grappling with both lower order volumes and unfavourable currency shifts, eroding margins further.

Several other counters recorded 5–6% intraday declines. Waa Solar Infrastructure Projects Limited ended 6.53% lower, while BTML, a micro-cap entity, lost 6.37%. Index-based funds such as GROWW Nifty 200 ETF and MSCI India ETF dropped 5.30% and 5.26% respectively, signaling widespread risk-off behaviour among institutional investors.

Are there structural concerns within specific sectors that amplified the declines?

The correction on April 8 reflected more than just short-term nervousness. It exposed deeper structural concerns across several sectors. In logistics, companies like Delhivery have scaled aggressively in anticipation of continued e-commerce expansion. However, any disruption in trade routes, customs processes, or global demand cycles can lead to overcapacity and pressure on earnings.

For consumer goods firms such as Stove Kraft, shifting demand patterns, especially in Tier-II and Tier-III cities, along with rising distribution costs, have begun to pinch. Inventory-led corrections have already emerged in several subcategories of home appliances and kitchenware, particularly after the festive season underperformed relative to expectations.

The steel and infrastructure-linked companies that registered declines on April 8—including Mahasagar Steel Limited, Oil Country Tubular Limited, and IG Petrochemicals Limited—reflect the broader slowdown in capex-linked demand. With government infrastructure spending moderating in the pre-election period and private sector capex still lagging, these firms have faced a tighter environment.

What role did central bank policy expectations play in investor sentiment?

Market participants are increasingly expecting the Reserve Bank of India to adopt a dovish stance in response to global trade shocks and weakening output growth. With the GDP forecast for FY2025–26 revised downward to 6.7%, pressure is mounting on policymakers to lower borrowing costs and stimulate demand.

Analysts widely expect the central bank to deliver a second consecutive rate cut in its April policy meeting. Such a move could ease financing costs for corporates and boost consumption, but may also put further pressure on the rupee. This delicate balancing act is now being closely watched by both domestic and foreign investors.

ETFs and financial stocks—such as DCM Financial Services, which declined 7.67%—often react to anticipated shifts in interest rates. A more accommodative monetary policy, while generally positive in the medium term, signals concerns about current growth momentum, further fueling near-term caution.

What does the April 8 sell-off signal for the Indian stock market’s near-term outlook?

The declines across the board—ranging from established mid-caps like AXISCADES Technologies, which closed down 5.00% at ₹794.20, to smaller counters like GLFL and Cineline India Limited—demonstrate the market’s sensitivity to macroeconomic cues. The move to reduce exposure in relatively illiquid counters and export-linked sectors underscores the caution gripping investors.

The outcome of the upcoming RBI meeting, clarity on how India will respond diplomatically and economically to the U.S. tariffs, and the rupee’s direction in currency markets will all be pivotal in shaping market direction. If external shocks escalate and earnings growth remains underwhelming, more corrections may follow, particularly in sectors with global exposure.

Yet, India’s long-term fundamentals—domestic consumption resilience, demographic advantages, and digital infrastructure—remain intact. Traders and institutional investors are likely to rotate selectively, moving toward sectors shielded from global volatility, such as financial services, pharmaceuticals, and domestic-focused consumer goods.