Indian stock markets ended lower on Tuesday, extending their losing streak as global trade tensions weighed on investor sentiment. Despite losses being relatively limited compared to international markets, weakness in IT and automobile stocks overshadowed gains in financial and public sector unit (PSU) shares. Meanwhile, small-cap stocks staged a strong rebound after facing heavy selling pressure in previous sessions.
The Nifty 50 closed with a 0.17% decline, marking its tenth consecutive session in the red, though it managed to defend the key 22,000 level by settling at 22,082 points.
The Sensex, however, slipped below the 73,000 mark, ending the day at 72,962 points, down 0.13% from the previous close.
Mid-cap and small-cap stocks showed resilience, with the Nifty Midcap 100 index gaining 0.05% to settle at 48,000, while the Nifty Smallcap 100 index surged by 0.69% to 14,762.
Global Trade Tensions Escalate
Markets across the globe experienced significant volatility following former US President Donald Trump’s confirmation that a 25% tariff on imports from Canada and Mexico would come into effect from Tuesday.
This move dashed hopes of a last-minute resolution to avoid the full implementation of these levies. Additionally, Trump announced an extra 10% duty on Chinese imports, doubling the tariff he had imposed on Beijing in early February.
Shortly after these announcements, China and Canada responded with retaliatory measures, fuelling concerns about a renewed global trade war.
The US is also considering fresh tariffs on agricultural imports, which could impact Indian exports, given the country’s position as one of the largest suppliers of agricultural products to the US.
Sectoral Performance: Media Stocks Recover, IT and Auto Suffer
Among sectoral indices, the Nifty Media index was the best performer, rebounding strongly with a 2.39% gain after the previous session’s sell-off. PSU banks also saw notable buying interest, with the Nifty PSU Bank index rising 1.55%.
Other gainers included Nifty Oil & Gas, Nifty Financial Services, Nifty Metal, and Nifty Bank, which registered increases ranging from 0.34% to 0.62%.
On the downside, automobile stocks suffered the most, with the Nifty Auto index tumbling 1.38%. The IT sector also remained under pressure due to concerns about a slowdown in the US economy, leading to a 0.93% decline in the Nifty IT index.
Other sectors, including Nifty FMCG, Nifty Pharma, and Nifty Realty, ended the session lower, with losses ranging between 0.11% and 0.61%.
Expert Insights
Commenting on the market’s performance, Vinod Nair, Head of Research at Geojit Financial Services, stated, “The domestic market showed signs of recovery from the day’s lows but remained in negative territory due to worsening global trade tensions.
However, the broader market outperformed, driven by value buying in small-cap stocks. While domestic economic indicators remain favourable, investors are looking for more clarity on global trade policies before committing to long-term positions.”
Technical Outlook
According to Rupak De, Senior Technical Analyst at LKP Securities, “After opening with a gap-down, the Nifty maintained a bullish bias throughout the day, finding strong support around the 22,000 mark. Although overall sentiment remains cautious, the index appears to be stabilising within the 21,800–22,000 zone. In the near term, a recovery is possible, but a decisive fall below 21,800 could shift the market’s trajectory.”
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