Mumbai (Maharashtra) [India], March 4 (ANI): Indian stock markets witnessed a continued selling spree on Tuesday as both benchmark indices opened in the red, reacting to global concerns over slowing economic growth in the US and the impact of new tariffs imposed by former US President Donald Trump.
The Nifty 50 index opened at 22,011.05, marking a decline of 108.25 points (-0.49 per cent), while the BSE Sensex started the session at 72,817.34, down by 268.60 points (-0.37 per cent).
Market sentiment remained weak as investors assessed the impact of global economic headwinds and sectoral pressures.
Ajay Bagga Banking and Market Expert told ANI, “Trump Tariffs and Ukraine are dominating the markets today as they have since the Nov 5th Elections outcome. Canada, Mexico and China tariffs will go ahead on Tuesday as per the latest White House communication on social media. India is showing strong green shoots in its domestic narrative but the challenged global momentum means any bottoming in India is at least a couple of months away and a recovery from there could take a few more months after that.”
Experts attributed the negative market sentiment to growing concerns over a slowdown in the US economy.
Key indicators such as poor retail sales, weak home sales, declining consumer sentiment, and sluggish manufacturing data have pointed toward an economic deceleration in the world’s largest economy.
This has raised fears of downgrades to corporate earnings, especially at a time when US markets are considered exceptionally overvalued.
Additionally, European stocks are currently attracting investment inflows due to Euro 170 billion in forecasted defense expenditure, which is expected to boost the region’s self-reliance in defense.
Meanwhile, Asian markets have reacted negatively to the implementation of Trump’s tariffs, which are feared to trigger recessions and economic instability in an already fragile global order.
On Monday, US markets witnessed a sharp decline due to the release of weak economic data, further fueling bearish sentiment across global equity markets.
In a significant development, OPEC+ has announced a production increase starting in April, leading to a sharp decline in crude oil prices. While falling crude prices are typically beneficial for India, a major oil importer, broader economic concerns have kept investor sentiment subdued.
Among sectoral indices, Nifty Bank remained flat but managed to stay in the green. However, Nifty Auto and Nifty IT faced sharp corrections, with losses of 1 per cent and 2 per cent, respectively. All other sectors were trading under pressure amid the broader market selloff.
In the Nifty 50 index, a significant 45 stocks opened in red, while only 5 stocks were in green at the time of reporting.
The other Asian Markets also declined. The negative sentiment extended across other Asian markets, with major indices registering declines, Japan’s Nikkei index plunged 1.77 per cent, Taiwan Weighted Index slipped 0.7 per cent, Hong Kong’s Hang Seng Index was down 0.33 per cent, South Korea’s Kospi Index declined 0.26 per cent
The global market weakness, coupled with concerns over US tariffs and economic slowdown, has contributed to cautious investor sentiment, keeping Indian and global equities under pressure. (ANI)
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