Market Commentary - Mid-Session
The domestic equity indices traded with significant losses in early trade, as market sentiment was dampened by US President Donald Trump's decision to implement tariffs on Canada and Mexico starting today, along with Canada's retaliatory tariffs on US goods. The Nifty tanked below the 22,000 level. Barring the Nifty PSU Bank index, all the sectoral indices on the NSE were in red.
At 09:30 IST, the barometer index, the S&P BSE Sensex, tumbled 630.79 points or 0.49% to 72,734.60. The Nifty 50 index declined 122.95 points or 0.56% to 21,996.35.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.90% and the S&P BSE Small-Cap index shed 0.32%.
The market breadth was weak. On the BSE, 966 shares rose and 1,955 shares fell. A total of 139 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 2.25% to 14.07.
Foreign portfolio investors (FPIs) sold shares worth Rs 4,788.29 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 8,790.70 crore in the Indian equity market on 03 March 2025, provisional data showed.
Stocks in Spotlight:
Capacite infraprojects shed 0.53%. The company said that its board is scheduled to meet on Thursday, 6 March 2025, to consider various fund-raising options (debt) on a private placement basis.
Uno Minda declined 3.21%. The company established an R&D engineering centre in the Czech Republic to develop advanced lighting technologies for the global automotive industry, potentially boosting innovation and market share.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was up 1.51% to 6.839 as compared with previous close 6.847.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.4050, compared with its close of 87.3200 during the previous trading session.
MCX Gold futures for 4 April 2025 settlement rose 0.05% to Rs 85,426.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 106.60.
The United States 10-year bond yield fell 0.81% to 4.146.
In the commodities market, Brent crude for May 2025 settlement shed 49 cents, or 0.68% to $71.13 a barrel.
Global Markets:
Japanese stocks fell more than 2% to lead declines in Asia-Pacific markets, after U.S. President Donald Trump made it clear that tariffs on Mexico and Canada would go into effect as planned.
Investors will be keeping a watch on Chinese stocks ahead of the country's annual parliamentary gathering, known as the 'Two Sessions,' which will kick off later in the day.
Overnight in the U.S., all three major indexes fell as Trump reiterated that 25% levies on imports from Mexico and Canada would go into effect Tuesday stateside.
The S&P 500 fell 1.76% to end the day at 5,849.72, marking this the benchmark's worst day since December. The Dow Jones Industrial Average dropped 649.67 points, or 1.48%, to finish at 43,191.24. The Nasdaq Composite slid 2.64% to close at 18,350.19, weighed down by Nvidia's decline of more than 8%.
On the economic front, New York Federal Reserve President John Williams is slated to speak Tuesday afternoon in New York.
Markets in Europe closed higher on Monday amid a charge in defense shares after regional leaders held security talks that touched on bolstered military spending.
The regional Stoxx 600 index moved between losses and gains in early deals before closing 1.1% higher. The Stoxx Europe aerospace and defense index rose by 8%, marking its best session in five years. EU Commission President Ursula von der Leyen told reporters in Brussels on Monday that the bloc's 27 member states would be given details about the so-called rearm Europe plan on Tuesday.
Her comments came after British Prime Minister Keir Starmer hosted a Ukraine peace summit over the weekend. During the talks, the U.K. leader said Kyiv's allies must step up and continue their support.
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