The Indian stock market ended in the red today as global trade uncertainties escalated and Foreign Institutional Investors (FIIs) continued their selling spree. Despite some buying support from Domestic Institutional Investors (DIIs), the overall sentiment remained cautious.
The BSE Sensex declined 268.60 points (0.37%) to close at 72,817.34, while the NSE Nifty50 dropped 108.25 points (0.49%) to settle at 22,011.05.
Key Market Movers
Top Gainers:
-
- State Bank of India (SBI): +0.93% (₹701.60)
- ICICI Bank: +0.73% (₹1,214.95)
- HDFC Bank: +0.55% (₹1,710.55)
Top Losers:
- Tech Mahindra: -2.74% (₹1,452.25)
- HCL Technologies: -2.47% (₹1,534.05)
- NTPC: -1.96% (₹308.35)
Sector-wise, the Nifty IT index fell 2.03%, making technology stocks the worst performers for the day, while real estate stocks also struggled, with the Nifty Realty index down 2.23%.
FII & DII Activity: FIIs Continue Heavy Selling
On March 4, 2025, FIIs remained net sellers, offloading shares worth ₹3,405.82 crore. Meanwhile, DIIs provided buying support, making net purchases of ₹4,851.43 crore.
The continuous FII outflows are a sign of global risk aversion, influenced by trade policy changes and external economic uncertainties. DII buying helped prevent a steeper decline, but investor sentiment remains cautious.
Upcoming Market Mover: U.S. Tariff Implementation
A major global event that could impact market movements is the U.S. tariff implementation, which is expected to increase trade tensions and market volatility:
- March 4, 2025: A 25% tariff on imports from Canada and Mexico and a 10% tariff on imports from China came into effect at 12:01 a.m. EST.
- March 12, 2025: The U.S. plans to expand its 25% steel and aluminum tariffs to all countries, removing prior exemptions.
These trade measures are likely to impact commodity prices, global supply chains, and investor sentiment, with a potential spillover effect on Indian equities.
Market Outlook
The Indian stock market is expected to remain volatile in the coming days as investors react to global trade developments and institutional flows. While DII buying provides some stability, the persistence of FII outflows and geopolitical uncertainties will continue to dictate short-term market movements. Traders and investors should stay alert to any further policy announcements and external economic triggers.