The Indian stock markets opened on a subdued note today. The BSE Sensex started the session down by 322.09 points (0.44%) at 72,876.01, following its previous close of 73,198.10 on Friday. Similarly, the NSE Nifty 50 index opened at 22,036.05, down 88.65 points (0.4%).

Performance Overview

Throughout the day, both indices exhibited volatility, reflecting investor concerns over global trade tensions and domestic economic indicators.

BSE Sensex: After touching an intraday low of 72,500, the Sensex managed to recover slightly, closing at 73,085.94, marking a decline of 112.16 points (0.15%) from the previous close.

NSE Nifty 50: The Nifty 50 also showed resilience, closing at 22,119.30, down 5.40 points (0.02%).

Sectoral Performance

The market's performance varied across different sectors:

Gainers:

• Metals: The Nifty Metal index rose by 1.5%, driven by gains in stocks like Tata Steel and JSW Steel.
• Realty: The Nifty Realty index gained 1.2%, with companies such as DLF and Godrej Properties leading the charge.

Losers:

• Oil & Gas: The Nifty Oil & Gas index declined by 2%, primarily due to a 3.7% drop in Reliance Industries. 
• Banking: The Nifty Bank index fell by 0.8%, with major banks like HDFC Bank and State Bank of India experiencing losses.

Major Movers

Top Gainers:

• Mahindra & Mahindra (M&M): Shares surged by 4% following robust quarterly earnings.
• UltraTech Cement: The stock climbed 3.5% on news of capacity expansion plans.

Top Losers:

• Reliance Industries: The stock dropped 3.7%, marking its worst session in five months, amid concerns over global trade policies. 
• State Bank of India (SBI): Shares declined by 2% due to profit booking.

Global Factors Influencing the Market

Several global developments have influenced investor sentiment:

US Tariffs: President Donald Trump's announcement of imposing 25% tariffs on imports from Canada and Mexico, along with increasing existing tariffs on Chinese goods from 10% to 20%, has raised concerns about a potential global trade war.

Foreign Institutional Investors (FIIs): FIIs have been net sellers, offloading shares worth ₹11,639 crore on Friday, bringing the total net outflow for February to ₹58,988 crore.

Technical Outlook

BSE Sensex:

• Support Levels: 72,780; 72,525; 72,315
• Resistance Levels: 73,870; 74,080; 74,300
• The index has broken key support levels on the quarterly and yearly Fibonacci charts, signaling prolonged negative momentum. A slide to 72,000 is possible in the near term, with additional downside targets at 70,150 and 69,000. On the upside, any pullback could see the Sensex test 76,300, with resistance at 74,350 and 75,150.

NSE Nifty 50:

• Support Levels: 22,000; 21,950; 21,850
• Resistance Levels: 22,450; 22,550; 22,670
• The Nifty is currently in an oversold zone, with the 14-day RSI at around 22. However, key indicators such as the Average Directional Index (ADX) and MACD suggest that the bears remain in control. The index is now on course to test its super trend line support at 21,515, with intermediate support at 21,850, aligning with the 100-week moving average. Sustaining above 22,200 could provide temporary relief, but any upside is likely to be capped at 22,900.

Investor Guidance

Given the prevailing market sentiment, further downside remains a possibility unless global triggers provide relief. Investors are advised to closely monitor geopolitical developments, foreign investor flows, and key technical levels before making investment decisions.

Conclusion

The Indian stock markets are currently navigating through a phase of heightened volatility, influenced by global trade tensions and domestic economic factors. Investors should exercise caution, stay informed about global developments, and consider consulting financial advisors before making investment decisions.

What caused the decline in the Indian stock markets today?

• The decline was primarily due to global trade tensions arising from new US tariffs and continued selling by foreign institutional investors.

Which sectors performed well despite the market downturn?

• The Metals and Realty sectors showed resilience, with indices rising by 1.5% and 1.2%, respectively.

How did global factors influence the Indian markets?

• Announcements of new US tariffs on imports from Canada, Mexico, and China have raised concerns about a potential global trade war, impacting investor sentiment worldwide.