Daijiworld Media Network- Mumbai
Mumbai, Mar 4: Indian stock markets opened on a weak note on Tuesday, tracking negative global cues, with significant selling pressure in the auto and IT sectors.
At 9:30 a.m., the Sensex was down by 363.22 points or 0.50 per cent at 72,722.72, while the Nifty fell 125.80 points or 0.57 per cent to 21,993.50.
Market experts attributed the decline to escalating trade tensions, as the tariff war initiated by the U.S. continues to intensify.
“The 25 per cent tariff on Canada and Mexico, along with the additional 10 per cent on China, signals that threats are now turning into action. The retaliatory measures from affected nations are yet to unfold, but counter-responses are inevitable," analysts stated.
In response to the U.S. tariffs, Canada has imposed a 25 per cent tariff on American imports worth 30 billion Canadian dollars, effective from today. Additionally, tariffs on U.S. imports worth 125 billion Canadian dollars will be enforced in the next 21 days.
Meanwhile, the Nifty Bank index declined 91.80 points or 0.19 per cent to 48,022.50. The Nifty Midcap 100 index dropped 883.50 points or 1.84 per cent to 47,100.65, while the Nifty Smallcap 100 index slipped 251.50 points or 1.72 per cent to 14,409.35.
Market analysts highlighted key support and resistance levels for Nifty. "Immediate support is seen at 22,000, followed by 21,850 and 21,600. Resistance is placed at 22,500, 22,600, and 22,800. A breakdown below 22,000 could lead to further selling pressure towards 21,800, whereas a recovery above 22,500 might trigger a relief rally," said Mandar Bhojane of Choice Broking.
Among Sensex stocks, Tech Mahindra, HCL Tech, Nestle India, Infosys, Tata Steel, M&M, and Titan were the top losers. ICICI Bank, HDFC Bank, and SBI were among the few gainers.
In the previous session, U.S. markets also saw a downturn. The Dow Jones fell 1.48 per cent to close at 43,191.24, the S&P 500 declined 1.76 per cent to 5,849.72, and the Nasdaq dropped 2.64 per cent to 18,350.19.
Asian markets reflected a similar sentiment, with major indices in China, Japan, Seoul, Jakarta, and Hong Kong trading in the red, while Bangkok was the only market in the green.
On the institutional front, Foreign Institutional Investors (FIIs) continued their selling streak for the eighth consecutive session, offloading equities worth Rs 4,788.29 crore on March 3. However, Domestic Institutional Investors (DIIs) purchased equities worth Rs 8,790.70 crore on the same day.