Indian Stock Market Braces for Sharp Drop Amid Global Sell-Off

Nifty 50 set for a gap-down opening as global markets tumble on Trump’s tariff hike and Wall Street sell-off.

March 4, 2025: Market Overview

The Indian stock market is set for a weak start on Tuesday, following a global sell-off triggered by US President Donald Trump’s fresh tariff hikes on Canada, Mexico, and China. Asian markets fell sharply, and Wall Street posted its worst single-day decline since December 2024, pushing investors towards safe-haven assets.

Also Read: Global Markets Crash as Trump’s Tariff Hike Sparks Pani

The Nifty 50 and Sensex ended lower on Monday, extending losses for the ninth straight session as foreign institutional investors (FIIs) continued their selling spree amid rising trade tensions, inflation concerns, and global economic uncertainty.

Key Market Indicators

Also Read: IRCTC & IRFC Granted Navratna Status: A Major Boost for Indian Railway

📉 Gift Nifty: Trading around 22,100, down 160 points from the Nifty futures’ previous close.
📉 Sensex (Previous Close): 73,085.94 (-112 points, -0.15%)
📉 Nifty 50 (Previous Close): 22,119.30 (-5.40 points, -0.02%)
📉 Nifty Smallcap 100: 14,660 (-0.27%)
📉 Nifty Midcap 100: 47,984 (+0.14%)

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Key Global Market Cues for Sensex Today

1️⃣ Wall Street Plunges as Trump Tariffs Shake Investors

📉 Dow Jones: -649.67 pts (-1.48%)
📉 S&P 500: -104.78 pts (-1.76%)
📉 Nasdaq: -497.09 pts (-2.64%)

• The US stock market fell sharply after Trump confirmed 25% tariffs on Mexico and Canada, and 20% tariffs on China.
• Tesla, Intel, Nvidia, Amazon, and Microsoft saw steep declines as technology and automaker stocks were hit the hardest.

2️⃣ Asian Markets Slide on US Trade War Fears

📉 Japan’s Nikkei 225: -1.03%
📉 South Korea’s Kospi: -0.41%
📉 Hong Kong’s Hang Seng: Futures indicate a weak open.

3️⃣ Trump Tariffs & Trade War Escalation

• Canada, Mexico, and China have all vowed retaliation, increasing fears of a full-scale trade war.
• Trump also confirmed reciprocal tariffs from April 2 on any country imposing duties on US goods.

4️⃣ US Manufacturing PMI Slips

• US Manufacturing PMI fell to 50.3 from 50.9, signaling slower economic growth.

5️⃣ FIIs Continue Selling in Indian Markets

• FIIs pulled out ₹3,200 crore from Indian equities on Monday, citing global instability.

6️⃣ US Suspends Military Aid to Ukraine

• Following tensions between Trump and Ukrainian President Zelenskiy, all military aid has been paused, adding to geopolitical uncertainty.

7️⃣ Japan’s Unemployment Rate Rises

📉 January Unemployment Rate: 2.5% (up from 2.4%)
📉 Jobs-to-applicants ratio: 1.26 (up from 1.25)

8️⃣ Bitcoin & Cryptos Crash Amid Trade War Fears

📉 Bitcoin: -8.15% ($85,656.32)
📉 Ether: -15%
📉 XRP, Cardano, Solana: Down nearly 20%

9️⃣ Crude Oil Prices Near 3-Month Lows

📉 Brent Crude: -0.46% ($71.29 per barrel)
📉 WTI Crude: -0.20% ($68.23 per barrel)

🔟 Gold Prices Hold Steady Amid Market Volatility

📉 Spot Gold: $2,892.64 per ounce
📉 US Gold Futures: $2,902.90

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Market Outlook: Caution Ahead

• The Nifty 50 is expected to open nearly 1% lower, continuing its losing streak as global headwinds intensify.
• Analysts warn that Trump’s tariffs could fuel inflation, disrupt trade, and further impact corporate earnings, making markets volatile in the coming sessions.
• Investors may shift focus to safe-haven assets like gold, while FIIs could extend their sell-off in Indian equities.

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Tags

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