Indian Stock Market Update: Sensex & Nifty Dip Amid Global Trade Worries

Date: 04-mar-2025

Sensex & Nifty End Lower as Global Trade Tensions Weigh

The Indian stock market witnessed a downturn on March 4, 2025, as global uncertainties and new U.S. tariffs impacted investor sentiment. The BSE Sensex closed at 73,085.94, down by 112.16 points (0.15%), while the NSE Nifty50 ended at 22,119.30, slipping 5.40 points (0.02%).

Key Factors Affecting the Market

1. Impact of U.S. Tariffs on Global Trade

The United States announced 25% tariffs on imports from Canada and Mexico and 20% tariffs on Chinese goods, escalating trade tensions worldwide. This move sparked fears of inflation in the U.S., which could lead to higher interest rates for an extended period, negatively affecting emerging markets like India.

2. Sector-Wise Performance

• IT Sector Losses: The Indian IT sector faced heavy selling pressure due to concerns about reduced demand from the U.S. market. Infosys and Tech Mahindra saw their stocks fall by nearly 2% each.
• Pharmaceutical Stocks Drop: Pharma companies reliant on U.S. exports also witnessed a downturn, with stocks like Sun Pharma and Dr. Reddy's trading in the red.
• Reliance Industries Declines: Reliance Industries, a market heavyweight, slipped by 3%, further dragging the indices lower.
• Banking Sector Stability: Banking stocks remained stable, with HDFC Bank and ICICI Bank showing resilience.

Market Outlook & Expert Insights

Analysts predict that the ongoing global trade war and inflation concerns will continue to drive volatility in the Indian stock market. Investors are advised to remain cautious, monitor international trade policies, and diversify portfolios to mitigate risks.

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