The Indian stock markets opened on a weak note on Tuesday, reflecting concerns over intensifying global trade tensions. Selling pressure was visible across the auto and IT sectors, dragging key indices down in early trade.
By 9:30 AM, the Sensex was trading 363.22 points lower at 72,722.72, marking a 0.50% decline, while the Nifty slipped 125.80 points to 21,993.50, falling 0.57%. The decline was fueled by persistent global uncertainties, particularly the escalation of the tariff war initiated by the United States.
Market experts believe that uncertainty in global trade has intensified following fresh tariff measures imposed by US President Donald Trump. The administration’s decision to increase tariffs by 25% on Canada and Mexico and 20% on China, along with an additional 10% duty, has raised concerns over potential retaliatory measures. The global market is yet to see the full extent of these responses, but analysts predict further volatility in the days ahead.
In response to the US tariff hikes, Canada has announced a 25% tariff on US imports worth 30 billion Canadian dollars, effective Tuesday. Additionally, tariffs on another 125 billion Canadian dollars worth of US goods will be imposed in the next 21 days, signaling a deepening rift in trade relations.
The broader Indian market mirrored the weak global sentiment. The Nifty Bank index declined 91.80 points to 48,022.50, while the Nifty Midcap 100 index tumbled 1.84% to 47,100.65. The Nifty Smallcap 100 index also saw a steep decline of 1.72%, closing at 14,409.35.
The market’s downturn was led by heavy losses in Tech Mahindra, HCL Tech, Nestle India, Infosys, Tata Steel, M&M, and Titan. However, ICICI Bank, HDFC Bank, and SBI managed to post gains, emerging as the top performers in the Sensex pack.
Global markets also showed signs of distress. On Wall Street, the Dow Jones ended the previous session with a 1.48% decline, closing at 43,191.24. The S&P 500 fell by 1.76% to 5,849.72, while the Nasdaq registered a sharp decline of 2.64%, settling at 18,350.19.
Asian markets, too, struggled to maintain stability. While Bangkok was the only major market trading in the green, key indices in China, Japan, South Korea, Jakarta, and Hong Kong were deep in the red.
Foreign institutional investors (FIIs) continued their selling spree for the eighth consecutive day, offloading equities worth ₹4,788.29 crore on March 3. On the other hand, domestic institutional investors (DIIs) provided some support to the market by purchasing equities worth ₹8,790.70 crore.
-IANS