Markets in freefall: These 20 Indian stocks crashed hard on April 3—here’s why

Indian stock markets faced a sharp correction on April 3, 2025, with several high-profile stocks witnessing steep declines under heavy selling pressure. The downturn came amid rising concerns over global trade disruptions, sticky inflation, and policy uncertainty at home, prompting investors to exit positions in sectors vulnerable to external headwinds. By the end of the trading session, some stocks had lost as much as 20%, with broader market sentiment turning increasingly risk-averse.

Market watchers attributed the slide to a combination of global macroeconomic volatility and domestic challenges, including currency pressure, margin compression in export-led sectors, and a broader rotation away from mid-cap and high-beta stocks. The selloff was most visible in segments such as IT, agriculture, chemicals, and infrastructure, where earnings outlooks appear increasingly uncertain.

Which Indian stocks were the top losers on April 3, 2025?

Leading the list of top losers was Pokarna Ltd., which fell by a staggering 20% to close at ₹954.60, significantly lower than its previous close of ₹1,193.20. The granite and quartz surfaces manufacturer, with notable exposure to international markets, was impacted by fears of global demand slowdown and potential trade friction.

Avanti Feeds Ltd. posted a loss of 15.25%, closing at ₹754.95 after heavy intraday volatility that saw it swing from ₹884.55 to ₹720.05. As one of India’s largest aquaculture companies, its sharp fall reflected concerns over export headwinds, including rising freight costs and tightening global food safety norms.

GRW Hitech, a less widely followed but high-value engineering and precision tools firm, shed 15.12%, ending at ₹3,200, down from its previous close of ₹3,770.05. Similarly, MPS Ltd., involved in publishing and digital content, saw its shares tumble 13.44% to ₹2,501.00, dragged by broader weakness in mid-cap tech names.

MBL Infrastructures Ltd. fell nearly 10%, closing at ₹49.64. The decline, while on a relatively low absolute price base, reflected margin pressure in the infra space, as rising material costs and interest rates continue to bite into profitability.

Among major IT services stocks, Persistent Systems Ltd. dropped 9.75% to ₹4,799.00, hit by broader weakness across the technology sector. Its fall mirrored the sentiment seen in Coforge Ltd., which closed down 7.81% at ₹7,155.00, and KPIT Technologies Ltd., which declined 7.40% to ₹1,214.90. Analysts noted that worries about softening global IT budgets and lower discretionary tech spending contributed to the selloff.

Cigniti Technologies Ltd., another IT testing and digital assurance firm, lost 6.48%, trading down to ₹1,321.00, while PGIL and Sharda Cropchem Ltd. dropped 7.22% and 6.17%, respectively. Sharda Cropchem’s decline came amid input cost inflation and reduced global demand for agrochemicals, a sector already under pressure from regulatory shifts in Europe and climate-driven uncertainties.

Consumer staple Dabur India Ltd. slipped 6.04% to ₹465.80, hit by continued cost pressures and concerns about rural demand recovery. Dabur’s performance was also impacted by margin concerns as FMCG players navigate high competition and input price volatility.

Lower down the capitalization curve, stocks like PK Tea, Agstra, Blue Coast Hotels, Raj TV Network, and GENSOL each recorded declines of over 5%. Notably, GENSOL Engineering, involved in solar and green energy projects, fell 5%, as markets turned cautious on capital-intensive energy transition plays amid funding cost concerns.

Rounding out the top 20 was Shaily Engineering Plastics, which declined 5% to ₹1,605.40, continuing its slide as global demand in automotive and consumer durable segments softened.

How are global and domestic policies impacting Indian equities?

The stock market correction did not occur in a vacuum. Investors are increasingly wary of the global macro environment, where a mix of high interest rates, geopolitical tensions, and fragile supply chains continues to generate volatility. The strengthening of the US dollar, combined with sticky inflation in developed economies, is pushing foreign portfolio investors (FPIs) toward safer assets, pulling capital out of emerging markets like India.

Domestically, uncertainty around fiscal support for infrastructure, agricultural subsidy rationalization, and potential changes in direct tax codes ahead of the general election are contributing to investor caution. While India’s growth remains structurally robust, near-term risks related to fiscal consolidation, rural consumption, and slowing export orders are prompting a shift away from high-valuation stocks.

The Reserve Bank of India’s upcoming monetary policy review is also under the spotlight. While inflation remains within target, the RBI has maintained a hawkish tone amid external uncertainties. Any indication of tightening or reduction in liquidity could further pressure rate-sensitive sectors like real estate, infra, and consumer durables.

Why are mid-cap and IT stocks under pressure in 2025?

The IT sector, once a market outperformer, has faced growing scrutiny in recent quarters. With the US and Europe tightening corporate IT budgets and a visible slowdown in discretionary tech spending, Indian service providers are seeing delayed project cycles and cautious guidance. Companies such as Persistent Systems, Coforge, and KPIT Technologies, all part of April 3’s top losers list, are grappling with deceleration in client decision-making, rising employee costs, and competition from global tech players entering the Indian outsourcing space.

Mid-cap stocks, more broadly, are seeing valuation corrections as investors rotate toward large-cap defensive names. With earnings dispersion likely to widen in FY2026, funds are rebalancing portfolios toward companies with stronger cash flows and limited global dependencies.

Are these declines a short-term correction or part of a deeper trend?

While one-day selloffs often lead to panic, many analysts view April 3’s correction as a healthy reality check after a prolonged bull run in Indian equities. The Nifty 50 and Sensex had hit record highs in March, with valuations in certain mid-cap sectors reaching frothy levels. In that context, the sharp cuts seen in stocks like Pokarna, Avanti Feeds, and MPS Ltd. may reflect position unwinding rather than deteriorating fundamentals.

However, structural headwinds remain. Export-oriented sectors are vulnerable to global policy shifts, and cyclical names may see earnings compression if input cost pressures persist. Investors are now likely to adopt a more selective approach, focusing on margin resilience and earnings visibility over thematic growth.