Nifty 50 ends lower for 10th straight session as global trade war intensifies; Sensex slips below 73K

Stock market today: Indian frontline indices wrapped up Tuesday's trading session, March 04, in negative territory, though losses were limited compared to global and Asian peers, which saw a significant sell-off after Donald Trump confirmed tariffs on Canada, Mexico, and China.

Markets tried to bounce back from February's rout, but a sharp decline in IT and auto stocks dragged them lower in today's session. While some support came from financials and PSU stocks, it was not sufficient to lift the market higher.

Small-cap stocks, however, bounced back sharply after facing severe selling pressure on Dalal Street, while mid-cap stocks also managed to end the session with mild gains.

The Nifty 50 ended the session with a decline of 0.17%, extending its losses to the 10th straight session but defended the crucial 22,000 mark, settling at 22,082 points. Meanwhile, the Sensex failed to hold the 73,000 mark in trade, ending at 72,962 points, down 0.13% compared to Monday's closing price.

The Nifty Midcap 100 index closed the session with a marginal gain of 0.05%, finishing at 48,000, while the Nifty Smallcap 100 index recorded a stronger gain of 0.69%, settling at 14,762.

Global trade tensions escalated further after Trump on Monday reiterated that 25% levies on imports from Mexico and Canada would go into effect on Tuesday, dashing investors’ hopes of a last-minute deal to avert full tariffs on the two U.S. allies. He also imposed an additional 10% tariff on Chinese imports, doubling the 10% duty he had placed on Beijing in early February.

Shortly after Trump's tariff announcement, China and Canada responded with retaliatory measures, raising fears of a new global trade war. The Trump administration is also planning to impose tariffs on agricultural imports, raising concerns as India is one of the largest agricultural exporters to the U.S.

Sectoral Watch: Media stocks rebound, auto stocks slump

Among sectoral indices, Nifty Media emerged as the top performer, bouncing back strongly from the previous day's selloff and gaining 2.39%. PSU banking stocks also recovered sharply in today's trade, with the Nifty PSU Bank index settling with a 1.55% gain. This was followed by Nifty Oil & Gas, Nifty Financial Services, Nifty Metal, and Nifty Bank, all ending with gains between 0.34% and 0.62%.

On the losing side, auto stocks stood out as the top laggard, with the Nifty Auto index tumbling by 1.38%. Nifty IT stocks also remained under selling pressure due to concerns over a slowing U.S. economy, with the index concluding the session with a 0.93% decline.

Other indices such as Nifty FMCG, Nifty Pharma, and Nifty Realty also ended lower, with losses ranging between 0.11% and 0.61%.

Commenting on today's market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, "The domestic market exhibited a recovery from today’s lows but remained in negative territory due to adverse global cues related to escalating global trade tensions. Nevertheless, the broader market outperformed, primarily driven by value buying opportunities in small-cap stocks. Currently domestic economic indicators are favourable while investors await clarity on global trades for a consistency in momentum."

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities, said, "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."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.