Markets commenced trading on a positive note on Thursday, buoyed by overnight gains in global markets. Reports emerged that the Trump administration is contemplating a one-month delay for imposing tariffs on Canadian and Mexican imports, specifically targeting automakers.
The Sensex opened at 74,308.30, up from the previous day’s close of 73,730.23, while the Nifty50 started the day at 22,476.35, building on Wednesday’s close of 22,337.30. Despite the initial uptick, both indices pared some of their early gains. As of 9.40 AM, the Sensex was trading at 73,633.44 (down 0.13 per cent) and the Nifty at 22,313.15 (down 0.11 per cent).
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted, “A positive opening could be seen for local markets in view of overnight recovery in US markets and subsequent gains in the Asian region amid reports the Trump presidential administration is considering a one-month delay for including automakers in freshly-imposed tariffs.”
In the early trading session, Shriram Finance emerged as the top gainer on NSE, rising by 2.72 per cent. This was followed by BPCL (2.09 per cent), Tata Steel (1.98 per cent), Asian Paints (1.63 per cent), and Hindalco (1.45 per cent). On the other hand, top losers included SBI Life (-1.62 per cent), Grasim (-1.53 per cent), Britannia (-1.30 per cent), Tata Consumer (-1.22 per cent), and Trent (-1.21 per cent).
The market’s positive momentum was further bolstered by the Reserve Bank of India’s announcement to inject liquidity through open market operations (OMO) and forex swaps. Devarsh Vakil, Head of Prime Research at HDFC Securities, highlighted RBI’s upcoming OMO purchases and forex swap auction as measures to inject more liquidity into the system.
Global markets also provided support to domestic sentiment. Wall Street indices closed higher on Wednesday, with the S&P 500 gaining 1.1 per cent and the Nasdaq up 1.5 per cent following the news on auto tariff exemptions. European markets surged after Germany announced plans to exempt military and defense spending from strict fiscal rules.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented, “We are in a highly uncertain and volatile situation for global trade, global economy, and markets. The end game of Trump’s tariff policy is unclear.”
Oil prices continued their downward trajectory, with Brent crude falling below $70 per barrel to nearly three-year lows. Vijayakumar added, “The dollar index declining to 104.3 is positive for emerging markets like India. If this trend persists, FII selling will soon stop paving the way for a market rally.”
Technical analysts maintained a cautiously optimistic outlook on market direction, with Vikas Jain, Head of Research at Reliance Securities, pointing out key support levels for the NIFTY-50.
Foreign institutional investors (FIIs) extended their selling streak for the tenth consecutive day on March 5, while domestic institutional investors (DIIs) continued their buying spree for the 20th day.
Gold prices remained resilient near record highs, trading at around $2,918 an ounce. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, provided insights on the support and resistance levels for gold.
The services sector showed a strong performance, with the Services PMI expanding in February 2025, counterbalancing a slowdown in manufacturing activity.
Looking ahead, market participants are awaiting the US jobs report expected on Friday, which could offer further direction to global markets amidst ongoing concerns about trade tensions and economic growth prospects.
