Indian equity indices ended lower but off day’s low in the volatile session on March 4 with Nifty falling below 22,000, intraday, for the first time since June 5, 2024 amid weak global markets as investors worried over global trade war after Trump reiterated to levy 25 percent tariff on imports from Mexico and Canada.
Trump also said that the US would impose tariffs on “external” agricultural products starting on April 2.
On the other hand, Canadian PM also announced retaliatory tariffs on the US effective today.
At close, the Sensex was down 96.01 points or 0.13 percent at 72,989.93, and the Nifty was down 36.65 points or 0.17 percent at 22,082.65.
With today's fall, the Nifty50 closed in the negative zone for the tenth session in a row, while Sensex ended lower for third day.
Broader indices outperform with BSE Midcap index ending flat and Smallcap index rising 1.3 percent.
Bharat Electronics, SBI, BPCL, Shriram Finance, Adani Enterprises were among major gainers on the Nifty, while losers were Bajaj Auto, Hero MotoCorp, Bajaj Finserv, Nestle and Eicher Motors.
Among sectors, Auto, IT, Telecom, FMCG down 0.4-1 percent, while bank, Capital Goods, oil & gas, media and PSU Bank up 0.5-2 percent.
570 stocks touched their 52-week low on the BSE, including Bajaj Auto, Hero MotoCorp, Dalmia Bharat, Tata Communications, Hatsun Agro, Kansai Nerolac, Astral, IIFL Finance, MRF, Sona BLW, Star Health, Colgate Palmolive, Nestle India, among others. Click here to view more
Outlook for March 5
Aditya Gaggar Director of Progressive Shares
Excessive pessimism and oversold conditions helped the Index recover quickly from its initial losses. The swift rebound in the Mid and Smallcap segments further pushed the Index higher, ultimately leading to a trade settlement at 22,082.65 with a loss of 36.65 points.
Among the sectors, Media and PSU Banks stood out as the top performers, while the Auto sector experienced the significant correction, followed by IT. The 22,000 level is expected to act as immediate support, with 22,260 seen as resistance. Additionally, formation of Bullish Engulfing candlestick pattern in the Mid and Smallcap segments suggests a potential trend reversal, indicating a shift in market sentiment.
Rupak De, Senior Technical Analyst at LKP Securities
Following a gap-down start, the Nifty remained bullish throughout the day. The index found support around 22,000 on a sustained basis. Though sentiment has not turned positive, there are signs that the index is finding support in the 21,800–22,000 zone.
In the short term, we might witness a recovery. However, a decisive fall below 21,800 could change the current equation.
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