The opening of benchmark indices on Friday morning saw a slight dip as uncertainty surrounding US trade policies and weak global cues impacted investor sentiment. The Sensex opened marginally higher at 74,347.14 but slipped to 74,099.90, a decrease of 240.19 points or 0.32 per cent from its previous close of 74,340.09. The Nifty also opened in line with its previous close at 22,491.90, but is currently down by 52.80 points or 0.23 per cent.
The market downturn followed a decline in US equity markets on Thursday, with technology stocks leading the way. The Nasdaq Composite fell by 2.61 per cent, entering correction territory, while the S&P 500 and Dow Jones Industrial Average also experienced losses.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the markets are closely watching Trump’s decisions on tariffs, especially after his recent announcement to postpone tariffs on Canada and Mexico until April 2nd. This uncertainty has raised concerns about the impact on global trade.
Asian markets followed the US equities downward, with benchmarks in Australia, Japan, and South Korea all declining by more than 1 per cent. Oil prices also remained under pressure, with Brent crude trading at a three-year low of $69.55 per barrel.
In the Indian market, BEL led the gainers on NSE, rising by 2.25 per cent, while other top performers included HDFC Life, Bajaj Auto, Hero MotoCorp, and Tata Motors. On the flip side, IndusInd Bank was the top loser, followed by BPCL, NTPC, Shriram Finance, and HCL Technologies.
Analysts remain cautious but see potential for a rebound in the market, especially after the RBI’s announcement of a ₹1 lakh crore liquidity infusion into the banking system. The ECB’s decision to reduce key interest rates and the fall of the US Dollar Index to a 4-month low could also support emerging markets.
Foreign Institutional Investors continued to sell equities on March 6, while Domestic Institutional Investors bought equities, indicating ongoing volatility in the market. Traders are advised to exercise caution and implement strict stop-loss strategies amid the uncertainty surrounding global trade policies.
