Stock markets braced for volatility as escalating global trade tensions threatened to derail economic stability, with President Donald Trump’s sweeping tariff measures casting a long shadow over international commerce.
The Sensex opened slightly higher at 73,005.37 compared to its previous close of 72,989.93 and is currently trading at 73,500.93, up by 511.00 points or 0.70 per cent. Similarly, the Nifty opened at 22,073.05 against its previous close of 22,082.65 and is now at 22,249.05, gaining 166.40 points or 0.75 per cent at 9.45 am.
The benchmark Nifty index, having endured its longest losing streak in 29 years, opened with cautious optimism amid mixed global signals. The index, which has plummeted nearly 15 per cent from its six-month peak, found itself teetering on critical support levels between 21,800 and 22,000 points.
“Uncertainty unleashed by Trump tariffs is reigning supreme,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “Trading volumes have dipped sharply, and the market’s direction remains unpredictable.”
The retaliatory measures from Canada and China in response to U.S. tariffs have heightened market tensions. Trump’s administration imposed 25 per cent tariffs on imports from Canada and Mexico, and 20 per cent on Chinese goods, prompting immediate counteractions that threaten to escalate into a full-scale trade war.
Foreign Institutional Investors (FIIs) continued their aggressive selloff, withdrawing approximately ₹3,405 crore from Indian markets on March 4. Domestic Institutional Investors (DIIs) attempted to provide some counterbalance, investing ₹4,851 crore during the same period.
Sector-specific impacts were pronounced. IT solutions company Coforge Ltd made headlines with a significant $1.56 billion multi-year agreement with Sabre Corporation, offering a rare bright spot in an otherwise challenging market landscape.
Commodity markets reflected the broader economic uncertainty. Gold prices surged as investors sought safe-haven assets, rising over 2 per cent in recent sessions. Brent crude oil prices slipped to three-month lows, influenced by potential OPEC+ output increases and geopolitical tensions.
Top gainers on the NSE included Tata Steel (2.33 per cent), HCL Tech (2.28 per cent), and Mahindra & Mahindra (2.13 per cent), while financial stocks like Bajaj Finance (-3.19 per cent) faced significant pressure.
“The market is dealing with pessimism surrounding Trump’s tariff policy and growing signs of an economic slowdown,” noted Prashanth Tapse from Mehta Equities. “If Nifty fails to maintain 22,000 on a closing basis, the next major support level could be as low as 21,281.”
Looking ahead, investors are advised to exercise caution. “It would be better to wait and watch how events unfold,” recommends Dr. Vijayakumar. “Fairly valued growth stocks, particularly those focused on domestic consumption, might offer long-term opportunities.”
With global markets experiencing volatility and trade tensions showing no signs of immediate resolution, the financial ecosystem remains on high alert, watching for the next move in this intricate economic chess game.
