Indian stock markets ended lower on March 4, 2025, as global trade tensions escalated following Donald Trump’s tariff announcement. The Nifty 50 extended losses for the 10th straight session, closing at 22,082 points, while the Sensex slipped below the 73,000 mark. IT and auto stocks weighed on the market, but small-cap stocks rebounded sharply.
Indian stock markets closed lower on March 4, 2025, as global trade tensions escalated following former U.S. President Donald Trump’s confirmation of tariffs on imports from Canada, Mexico, and China. The Nifty 50 index recorded its 10th consecutive loss, closing at 22,082 points, while the Sensex dropped below 73,000, ending the day at 72,962 points.
The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are India’s primary stock exchanges, where the Nifty 50 and Sensex are the benchmark indices tracking the overall market performance. The ongoing market decline was fueled by a sell-off in IT and auto stocks, overshadowing the gains seen in PSU banks and small-cap stocks.
Markets React to Trade War Developments
Indian markets attempted a recovery from February’s losses but faced resistance due to mounting global trade concerns. On Monday, Trump reiterated that a 25% tariff on imports from Canada and Mexico would take effect on Tuesday. He also announced an additional 10% tariff on Chinese imports, doubling the existing duties imposed in February. The move sparked a wave of retaliatory measures from Canada and China, heightening fears of a prolonged trade war.
These developments triggered a sell-off in global markets, with Indian indices also feeling the impact. While financial and PSU stocks provided some support, it was not enough to offset the weakness in IT and auto stocks.
Sectoral Performance: IT and Auto Stocks Drag Market Down
Among sectoral indices, Nifty Media led the gainers, rebounding 2.39% from the previous session’s losses. PSU banks also recovered, with the Nifty PSU Bank index rising by 1.55%. Nifty Oil & Gas, Nifty Financial Services, and Nifty Bank posted modest gains between 0.34% and 0.62%.
On the downside, the Nifty Auto index declined by 1.38%, making it the worst-performing sector. Nifty IT stocks also continued to struggle amid concerns about a slowing U.S. economy, dropping by 0.93%. Other sectors, including FMCG, Pharma, and Realty, also ended in negative territory, with losses ranging from 0.11% to 0.61%.
Market Analysts Weigh In
Vinod Nair, Head of Research at Geojit Financial Services, commented on the market’s performance, stating, “The domestic market showed some resilience but remained under pressure due to escalating global trade tensions. However, broader market segments, especially small-cap stocks, outperformed due to value-buying opportunities.”
Rupak De, Senior Technical Analyst at LKP Securities, provided a technical perspective: “The Nifty 50 found support at the 22,000 level, showing signs of stabilization. If the index breaks below 21,800, further downside pressure could emerge. However, a near-term recovery is possible if it holds above the 22,000 mark.”
Outlook for the Coming Sessions
As investors digest the latest global trade developments, Indian markets are expected to remain volatile. The upcoming economic data and RBI’s monetary policy stance will be closely watched for further cues. Market experts advise caution and recommend a stock-specific approach while navigating the current uncertainty.
