Indian equity markets witnessed a sharp decline on Friday, with the Sensex and Nifty dropping over 1.26% in early trade, as weak global cues and trade policy uncertainties rattled investor confidence.
The downturn followed US President Donald Trump’s confirmation of new trade tariffs, set to take effect on 4 March, targeting imports from Mexico and Canada.
Additionally, the government will double tariffs on Chinese goods to 20%.
On Truth Social, Trump stated, “This was a necessary response to reject illegal drugs entering the US from these countries.”
At around 9:58 AM, the Sensex plunged 1,004 points, or 1.35%, to 73,607.96, while the Nifty slipped 304 points, or 1.35%, falling below 22,250.
The Nifty Bank index declined 302.50 points, or 0.62%, to 48,441.30. The Nifty Midcap 100 fell 1,009.60 points, or 2.05%, to 48,127.15, while the Nifty Smallcap 100 was down 318.40 points, or 2.10%, at 14,838.20.
Analysts noted that the subdued price movement reflects sustained bearish sentiment, leading to a cautious stance among investors.
Sameet Chavan, Head Research, Technical and Derivative, Angel One asserted, “In terms of levels, the support level at 22500-22400 is critical for the Nifty50 index in the near future and requires close monitoring. Its ability to hold may determine whether a rebound is possible or if further declines are likely. On the flip side, the bearish gap of 22670-22720 remains a daunting task for the bulls, and a decisive breakthrough could only provide a short-term breather in the market sentiments.”
Market participants are advised to stay alert to global developments, which will continue to shape domestic market trends.
Experts also suggest avoiding aggressive positions until a clear recovery emerges.
Also Read: Sensex, Nifty Open Lower As Auto, IT, & Metal Stocks Decline
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