India’s benchmark indices opened lower on March 4, tracking weakness across Asian markets after U.S. President Donald Trump confirmed his proposed tariffs would take effect as planned. Starting today, the U.S. will impose a 25 percent tariff on imports from Canada and Mexico, while Chinese goods will face an additional 10 percent levy, bringing the total tariff on China to 20 percent. Trump also announced reciprocal tariffs beginning April 2, further escalating trade tensions and sending financial markets into turmoil.
At 9:34 AM, the Sensex was down 268 points or 0.4 percent at 72,817, and the Nifty was down 93 points or 0.4 percent at 22,025. About 1,462 shares advanced, 1,480 shares declined, and 147 shares were unchanged. The Sensex and Nifty were down 18 percent and 19 percent, respectively, from their record highs in September, weighed down by growth concerns, weak corporate earnings, relentless foreign selling, and trade-related uncertainty. In the previous session, both indices closed flat, with oil & gas and financial services stocks dragging the Nifty lower, while IT stocks provided some support.
"Like yesterday, we may see buying interest at lower levels. I wouldn’t be surprised if the market bounces back and closes near yesterday’s levels," said Ambareesh Baliga, an independent market analyst. "At these levels, valuations have become reasonable—while not exactly compelling, they are certainly more attractive compared to the past year or so."
Follow our live blog for all the market action
Baliga expects some further downside over the next month, though he does not anticipate a crash. "Any further correction should be viewed as a buying opportunity," he said.
He has been tracking the 22,000–22,500 range on the Nifty for months, which has now been breached. "In volatile situations like this, we could see another 500 to 750 points of downside. That said, I don’t expect a sharp correction from here. Most of the decline has already played out."
Beyond the direct trade impact, these tariffs could stoke inflationary pressures in the U.S., prompting the Federal Reserve to keep interest rates higher for longer—an outcome that could curb foreign capital inflows into emerging markets like India.
The broader markets also declined, with the BSE Smallcap slipping 0.8 percent and the BSE Midcap shedding 1.2 percent. The small- and mid-cap indices officially entered bear market territory in February, falling over 20 percent from their record highs.
In sectoral performance, all 12 sectoral indices, except Nifty PSU Bank, were either flat or in the red. Nifty IT was the worst performer, sliding over 2 percent, weighed down by Infosys and HCLTech, mirroring the sharp 3 percent drop in the tech-heavy Nasdaq Composite overnight.
Among Nifty 50 constituents, Tech Mahindra, HCLTech, Hero MotoCorp, Britannia, and Titan were the biggest losers, declining 1-2 percent. On the other hand, SBI and ICICI Bank were the only gainers, rising 0.2 percent and 2 percent, respectively.
SBI shares defy market weakness following a 'double upgrade' from Citi. Global brokerage firm Citi upgraded State Bank of India (SBI) two notches—from 'sell' to 'buy'—signaling a strong bullish outlook on the country's largest lender. The firm also raised its price target to Rs 830 from Rs 720, implying a potential upside of nearly 20 percent from its closing level in the previous session.
"Technically, Nifty on a daily scale has formed a small red candle, suggesting weakness, and as long as it remains below 22,500, the bearish momentum is expected to persist," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates.
He noted that on the downside, the psychological level of 22,000 will serve as immediate support, followed by 21,900, where the 100-Weekly Simple Moving Average (100-WSMA) is positioned. He advised traders to adopt a ‘sell-on-rise’ strategy as long as the index remains below 22,500.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
