Markets open mixed amid global trade tensions; tech sector drags while auto, banking show resilience
Markets opened on a mixed note Wednesday morning, with the benchmark Sensex trading at 74,123.35, up marginally by 0.03 per cent, while Nifty slipped slightly to 22,486.90, down 0.05 per cent from previous close. The cautious opening follows volatile global cues triggered by escalating trade tensions and geopolitical developments.
Technology stocks faced significant selling pressure in early trade, with major IT companies leading the losers’ list. Infosys dropped 3.63 per cent, Wipro fell 3.37 per cent, HCL Technologies declined 2.64 per cent, and TCS retreated 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.”
Auto stocks showed remarkable strength, with Tata Motors emerging as the top gainer, surging 3.10 per cent on robust volume of 38.40 lakh shares. The banking sector displayed mixed performance, with IndusInd Bank rebounding 2.44 per cent after yesterday’s sharp 27 per cent plunge following disclosures of irregularities in forex derivatives accounting and the RBI’s decision to trim CEO Sumant Kathpalia’s tenure.
HDFC Bank and Kotak Mahindra Bank also showed positive momentum, gaining 1.67 per cent and 1.57 per cent respectively. Oil marketing company BPCL advanced 1.34 per cent, reflecting optimism in the energy sector.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted the market’s resilience despite global headwinds. “Investors should keep in mind two important features of the near-term trend in stock markets. Globally, the markets are weak and jittery on concerns arising from the tariff policy uncertainties. However, even in this negative backdrop, the Indian equity market is showing some resilience.”
Global markets have been particularly volatile following Donald Trump’s return as the 47th U.S. president. “Since Donald Trump’s return as the 47th president of the United States, global stock markets have been volatile, with US stocks facing their worst start to a presidential term since 2009,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
The international landscape saw significant developments overnight, with Ukraine announcing readiness to accept a 30-day ceasefire with Russia. Additionally, market participants closely watched the unfolding trade dispute between the U.S. and Canada, with President Trump initially announcing a 50 per cent tariff on Canadian steel and aluminum before suddenly reversing course.
“The dollar index fell to a nearly 5-month low at below 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.
As trading progresses, market participants are advised to maintain a cautious stance. “Given 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.
