Nifty 50 Slips for 10th Consecutive Session Amid Intensifying Global Trade War; Sensex Dips Below 73,000
Stock Market Today: March 4, 2025
Nifty 50 Slips :The Indian stock market continued its downward trajectory for the 10th straight session on Tuesday, March 4, as escalating global trade tensions dampened investor sentiment. While Indian markets managed to limit losses compared to their global counterparts, a sharp decline in IT and auto stocks prevented any significant recovery.
The Nifty 50 ended the day with a modest loss of 0.17%, closing at 22,082 points, managing to defend the crucial 22,000 mark. Meanwhile, the Sensex slipped below the 73,000 level, ending at 72,962 points, down 0.13% from its previous close.
Despite the weakness in large-cap stocks, mid-cap and small-cap indices showed resilience, with the Nifty Midcap 100 closing slightly higher by 0.05% at 48,000, while the Nifty Smallcap 100 outperformed with a gain of 0.69%, settling at 14,762.
Global Trade War Adds to Market Woes
The sell-off in global markets was triggered by former U.S. President Donald Trump’s announcement of fresh tariffs on imports from Mexico, Canada, and China, further escalating trade tensions.
- Trump confirmed that the 25% levies on imports from Canada and Mexico would take effect immediately, leaving no room for last-minute negotiations.
- Additionally, he doubled tariffs on Chinese goods, imposing a fresh 10% duty on Beijing’s exports to the U.S.
- In retaliation, China and Canada imposed countermeasures, fueling fears of a full-blown global trade war.
With the U.S. also considering tariffs on agricultural imports, Indian exporters fear potential disruptions, given that India is one of the largest agricultural suppliers to the U.S.
Sectoral Performance: Auto and IT Stocks Drag, Media Stocks Shine
The broader market witnessed mixed movements, with certain sectors showing resilience while others bore the brunt of global uncertainty.
| Sector | Performance |
|---|---|
| Nifty Media | 🔼 +2.39% (Top gainer) |
| Nifty PSU Bank | 🔼 +1.55% |
| Nifty Oil & Gas | 🔼 +0.62% |
| Nifty Financial Services | 🔼 +0.50% |
| Nifty Metal | 🔼 +0.34% |
| Nifty Auto | 🔽 -1.38% (Worst performer) |
| Nifty IT | 🔽 -0.93% |
| Nifty Realty | 🔽 -0.61% |
| Nifty FMCG | 🔽 -0.45% |
| Nifty Pharma | 🔽 -0.11% |
- Auto stocks suffered the most, with Nifty Auto plunging 1.38%, as concerns over slowing global demand and supply chain disruptions weighed on investor confidence.
- IT stocks remained under pressure, losing 0.93%, as fears of a slowdown in the U.S. economy dampened earnings growth expectations.
- Nifty Media was the best performer, rebounding 2.39% as investors found value in oversold stocks.
- PSU Banks and financial services stocks witnessed gains, with the Nifty PSU Bank index rising 1.55%, as investors shifted focus to domestic plays amid global uncertainty.
Expert Take on Market Sentiment
Market experts believe that while domestic fundamentals remain strong, external factors are driving the current volatility.
Vinod Nair, Head of Research at Geojit Financial Services, stated:
“The Indian market showed some resilience compared to its global peers but remained under pressure due to escalating trade war fears. While broader markets outperformed, large-cap stocks, particularly in IT and auto sectors, faced persistent selling pressure. Investors are awaiting clarity on global trade before taking fresh positions.”
Rupak De, Senior Technical Analyst at LKP Securities, commented on the technical outlook for the Nifty:
“The Nifty managed to defend the 22,000 level, indicating support in the 21,800–22,000 range. A short-term recovery is possible, but a decisive breakdown below 21,800 could trigger deeper corrections.”
Key Market Ratios & Technical Indicators
To give a clearer picture of market valuation and trends, here are the latest key financial ratios and technical indicators:
| Indicator | Value |
|---|---|
| Nifty PE Ratio | 22.4 |
| Nifty PB Ratio | 4.1 |
| Nifty Dividend Yield | 1.3% |
| India VIX (Volatility Index) | 13.2 (+4.5%) |
| FIIs Net Selling | ₹1,250 Cr |
| DIIs Net Buying | ₹850 Cr |
- The India VIX saw a sharp 4.5% rise, signaling increased volatility in the market.
- Foreign Institutional Investors (FIIs) remained net sellers, pulling out ₹1,250 crore, while Domestic Institutional Investors (DIIs) tried to cushion the fall by buying ₹850 crore worth of stocks.
- The Nifty PE Ratio at 22.4 suggests that the market is still trading at a premium, though recent corrections have brought valuations closer to fair levels.
What Lies Ahead?
With global trade war tensions escalating and central banks signaling no immediate rate cuts, market volatility is expected to continue. However, analysts believe that strong domestic economic indicators, robust earnings growth, and government initiatives could provide downside support in the near term.
Key triggers to watch this week:
✅ U.S. economic data & Fed’s stance on interest rates
✅ India’s GDP growth forecast revision
✅ Global trade negotiations & tariff-related updates
✅ Foreign investment trends & RBI policy cues
For now, investors should remain cautious and focus on fundamentally strong stocks while avoiding excessive leverage in uncertain times.
Final Thoughts
The Indian stock market remains under pressure, but mid- and small-cap segments are showing signs of resilience. While global uncertainties persist, value-buying opportunities are emerging, especially in select sectors like PSU banks, media, and financials.
The coming weeks will be crucial in determining whether the markets stabilize or face further downside risks, making global developments the key trigger to watch.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.