Sensex & Nifty 50 Impacted by Global Trade Tensions

Market Performance

On March 4, 2025, the prominent Indian stock indices ended in negative territory. The Nifty 50 declined for the 10th consecutive session, closing at 22,082.65 points, down 0.17%. Similarly, the Sensex concluded the day at 72,989.93 points, reflecting a decrease of 0.13%.

Despite the broader market weakness, specific segments experienced limited recoveries. The BSE Midcap index posted a minor gain of 0.08%, while the BSE Smallcap index advanced by 1.28%.The aggregate market value of all companies listed on the BSE increased to ₹385 lakh crore, rising from ₹384 lakh crore in the previous trading session.

From their respective record highs, the Nifty 50 has now dropped by 16% from 26,277.35 points, while the Sensex has declined by 15.11% from its peak of 85,978.25 points.

Main News

Global trade concerns significantly influenced market sentiment. The announcement of additional tariffs by the United States on imports from Mexico, Canada, and China contributed to global uncertainty. The new trade measures included:

• A tariff of 25% is applied on Goods imported from Mexico and Canada.
• An additional 10% tariff on goods from China will raise the total to 20% after previous tariffs.

Following these actions, retaliatory tariffs from China and Canada were introduced, intensifying worries about a potential global trade conflict. This development heightened fears of negative impacts on international economic growth and inflation.

Domestically, concerns over continued foreign capital outflows and indications of slowing economic momentum further weighed on investor sentiment.

Sectoral Performance

Within the sectoral indices:

• Nifty Media experienced a recovery, gaining 2.39%.
• Nifty PSU Bank advanced by 1.55%.
• Nifty Oil & Gas, Nifty Financial Services, Nifty Metal, and Nifty Bank recorded gains between 0.34% and 0.62%.

Conversely, specific sectors faced declines:

• Nifty Auto registered a decrease of 1.38%.
• Nifty IT dropped by 0.93%.
• Nifty FMCG, Nifty Pharma, and Nifty Realty posted losses between 0.11% and 0.61%.

Company Details

Among individual companies on the Nifty 50, Infosys, Reliance Industries, and Bharti Airtel shares were among the leading contributors to the index's decline.

Summary of the Article

The Indian stock market faced another session of losses on March 4, 2025, influenced primarily by escalating global trade tensions. The ongoing tariff measures introduced by the United States and the retaliatory responses from affected countries heightened fears of economic slowdown and increased inflation pressures worldwide.

While broader indices remained under pressure, some segments, such as mid-cap and smallcap stocks, demonstrated resilience, reflecting varied market dynamics. Media and Public Sector Banks outperformed sector-wise, whereas Auto and IT stocks faced headwinds.

This session marked the 10th straight day of losses for the Nifty 50, highlighting the persistent caution prevailing in the markets amid global uncertainties.