Markets started the day with a mixed opening on Wednesday, as the Sensex was trading at 74,123.35, up by 0.03 per cent, while the Nifty slipped slightly to 22,486.90, down by 0.05 per cent. The cautious start comes amidst volatile global cues due to escalating trade tensions and geopolitical developments.
In early trade, technology stocks faced significant selling pressure, with major IT companies leading the losers’ list. Infosys dropped by 3.63 per cent, Wipro fell by 3.37 per cent, HCL Technologies declined by 2.64 per cent, and TCS retreated by 2.05 per cent. Market analysts attribute this weakness to concerns over the potential impact of new U.S. tariff policies on global trade.
“The market is expected to open flat, driven by hopes of easing trade tensions between India and the US,” said Mr. Vikas Jain, Head of Research at Reliance Securities. “Both countries are likely to focus on increasing market access, reducing import duties, and addressing non-tariff barriers, along with enhancing supply chain integration.”
On the other hand, auto stocks showed strength, with Tata Motors emerging as the top gainer, surging by 3.10 per cent on robust volume. The banking sector displayed mixed performance, with IndusInd Bank rebounding by 2.44 per cent after a recent sharp plunge due to irregularities in forex derivatives accounting. HDFC Bank and Kotak Mahindra Bank also showed positive momentum, gaining by 1.67 per cent and 1.57 per cent respectively. Oil marketing company BPCL advanced by 1.34 per cent, reflecting optimism in the energy sector.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the market’s resilience amidst global headwinds. “Investors should keep in mind that globally, markets are weak and jittery due to tariff policy uncertainties, but the Indian equity market is showing some resilience.”
Global markets have been volatile since the return of Donald Trump as the U.S. president. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted that U.S. stocks are facing their worst start to a presidential term since 2009.
Overnight, Ukraine announced its readiness to accept a 30-day ceasefire with Russia, while the U.S. and Canada were involved in a trade dispute, with President Trump initially announcing a tariff on Canadian steel and aluminum before backtracking on the decision.
“The dollar index fell to a nearly 5-month low below the 104 level,” noted Mr. Jain, highlighting factors that could influence currency and commodity markets. Gold and silver prices bounced back sharply amid increased safe-haven buying triggered by global uncertainties.
Technical analysts remain cautious but see potential for recovery. “The market is in the range of 22,400-22,600. Breaking above 22,600 would signal a breakout, while falling below 22,400 could trigger a downside move to 22,200,” said Shrikant Chouhan of Kotak Securities.
Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth Rs 2,823 crore on March 11, while Domestic Institutional Investors (DIIs) bought equities worth over Rs 2,000 crore, providing some counterbalance to foreign outflows.
Amidst the ongoing volatility, traders are advised to exercise caution, implement strict stop-loss strategies, and avoid carrying overnight positions, recommended Hardik Matalia, Derivative Analyst at Choice Broking.
