Indian stock markets started the day on a weak note on Tuesday, March 4, 2025, following global uncertainties triggered by US President Donald Trump’s decision to impose tariffs on Canada and Mexico. The retaliatory move from Canada further dampened investor sentiment, leading to a volatile trading session across major indices.
The BSE Sensex, which saw early morning declines, managed to recover slightly but remained in negative territory. At last count, the benchmark index was down 203 points, or 0.28%, trading at 72,882.5. The broader Nifty50 index also followed a similar trend, slipping 65 points, or 0.29%, to settle at 22,055. Earlier in the session, Nifty50 fell below the crucial 22,000 mark for the first time in nine months, indicating underlying bearish pressure in the market.
MidCap and SmallCap stocks bore the brunt of the sell-off, with the Nifty MidCap index declining by 1.69% and the Nifty SmallCap index slipping 1.61%. Analysts attributed the weakness to global cues, particularly the trade tensions involving the US, Canada, and Mexico, which have raised concerns about economic stability. Additionally, the uncertainty surrounding Trump’s decision to halt military aid to Ukraine has further unnerved investors.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, pointed out that the Nifty’s 22,000 level and the Sensex’s 72,800 mark would serve as key support levels for traders. If these levels hold, the market could see a reversal. However, if they are breached, a deeper correction is likely. On the upside, resistance levels are expected around 22,200–22,300 for the Nifty and 73,400–73,800 for the Sensex. A breakout above these levels could trigger fresh buying interest and drive the indices higher.
Global markets reflected similar weakness, with major indices in Asia and the US witnessing sharp declines. Japan’s Nikkei plunged 2.16%, Australia’s ASX200 dropped 1%, and Hong Kong’s Hang Seng slipped 1.45%. South Korea’s Kospi remained volatile but traded near the flat line. Overnight in the US, Wall Street witnessed a significant downturn, with the S&P 500 shedding 1.76%, the Dow Jones Industrial Average falling 1.48%, and the Nasdaq Composite tumbling 2.64%. The tech-heavy Nasdaq was particularly impacted by a steep 8% drop in Nvidia shares.
Market experts suggest that investors should tread cautiously given the current global volatility. While domestic fundamentals remain strong, external factors like trade policies, geopolitical tensions, and economic uncertainties could continue to influence market sentiment in the coming days.
