Stock Market Update: Sensex Dips, Nifty Near 22,100 Amid Global Trade Uncertainty

Mumbai, March 4, 2025 – The Indian stock market remained under pressure on Monday, with the Sensex slipping over 100 points and the Nifty hovering around the 22,100 mark, weighed down by global trade tensions and foreign investor outflows. While select PSU bank and oil & gas stocks outperformed, the broader market showed mixed trends as investors remained cautious about the economic impact of U.S. tariffs.

Markets React to Global Trade Developments

Indian equities opened on a volatile note as fresh tariff hikes imposed by the U.S. on China, Canada, and Mexico rattled investor sentiment worldwide. The 25% tariff on imports from Canada and Mexico, along with a 20% duty on Chinese goods, led to uncertainty across global markets. These protectionist measures are expected to have ripple effects, raising inflation in the U.S. and prompting the Federal Reserve to keep interest rates higher for longer—a factor that could limit foreign investments in emerging markets like India.

At 2:10 PM, the Sensex was down by 92 points, trading at 72,993, while the Nifty slipped by 29 points to 22,089. Market breadth remained slightly positive, with 1,967 stocks advancing against 1,554 declines, while 120 stocks remained unchanged.

“The 21,800-22,000 zone remains a key support level for Nifty. However, global trade concerns, foreign fund outflows, and weak sentiment are keeping investors on edge,” said Ajit Mishra, SVP of Research at Religare Broking.

Sectoral Performance: IT, Auto Weigh on Indices; PSU Banks, Oil & Gas Stocks Gain

While auto, IT, realty, and telecom stocks declined between 0.5-1%, certain sectors showed resilience. Banking, capital goods, oil & gas, and PSU banks posted gains of up to 1.5%, helping limit the overall downside in the market.

• Top Gainers: Bharat Electronics (BEL), State Bank of India (SBI), BPCL, Coal India, and TCS advanced between 1% and 3%, supporting the market.
• Top Losers: Bajaj Auto, Hero MotoCorp, Bajaj Finserv, Nestle, and HCL Technologies lost between 2% and 4%, dragging the indices lower.

The BSE Midcap index declined by 0.4%, while the BSE Smallcap index gained 0.6%, highlighting a mixed trend in the broader market.

Foreign Institutional Investors (FIIs) Continue Selling Pressure

Foreign investors have been consistently selling Indian equities amid concerns over slowing growth and rising global economic uncertainties. On March 1, FIIs net sold Indian stocks worth ₹4,788 crore, extending their selling spree, while Domestic Institutional Investors (DIIs) stepped in, purchasing ₹8,553 crore worth of equities, providing some support to the market.

The sustained selling pressure has pushed Indian markets into a longest losing streak in nearly three decades, with the Nifty remaining in the red for ten consecutive sessions.

Brokerage Calls: SBI Sees a ‘Double Upgrade’ from Citi

One of the key highlights of the session was SBI’s stock gaining momentum after global brokerage firm Citi issued a rare ‘double upgrade’, moving its rating two notches higher—from ‘Sell’ to ‘Buy’. The firm revised SBI’s target price to ₹830 from ₹720, implying a potential 20% upside from its previous close.

“SBI’s strong asset quality, robust loan growth, and improving profitability metrics justify a re-rating,” Citi analysts noted.

Corporate Developments & Stock-Specific Movements

• ASK Automotive Surges 5%: The auto components manufacturer hit a 5% upper circuit after announcing a strategic partnership with Japan’s Kyushu Yanagawa Seiki to produce high-pressure die-cast alloy wheels for two-wheelers.
• HBL Engineering Jumps 2%: The stock rallied after securing a ₹148 crore Letter of Award (LoA) from the West Central Railway’s Bhopal Division.
• Gensol Engineering Plunges 20%: The stock took a sharp hit after CARE Ratings downgraded its long-term and short-term bank facilities due to liquidity concerns.

Outlook: Key Levels to Watch for Nifty & Sensex

Technical analysts are closely watching the 21,800-22,000 range on the Nifty as a critical support zone. If the index falls below this level, further downside toward 21,500 cannot be ruled out. However, if the Nifty holds above 22,000 and recovers towards 22,300, it could signal a potential short-term rebound.

“Market sentiment remains fragile. We need positive global cues or institutional buying to see a sustained recovery. Watch out for Nifty holding above 21,800 for any signs of strength,” said Mishra.

Market Sentiment Hinges on Global Cues & Institutional Flows

The Indian stock market remains under pressure as global uncertainties persist. The key triggers in the coming days include any further developments in the U.S. tariff situation, foreign investment trends, and policy actions from central banks worldwide. While domestic fundamentals remain strong, near-term volatility is likely to persist.

Investors are advised to stay cautious and focus on fundamentally strong stocks with stable earnings visibility, especially in sectors such as banking, capital goods, and oil & gas, which have shown resilience amid market turbulence.