Markets opened on a weak note Tuesday, with the BSE Sensex and NSE Nifty extending their losing streak amid escalating global trade tensions.

The benchmark Sensex opened lower at 72,817.34 compared to its previous close of 73,085.94 and is currently trading at 72,837.38, down by 248.56 points or 0.34 per cent. Similarly, the Nifty opened at 21,974.45 against its previous close of 22,119.30 and is now at 22,047.60, down by 71.70 points or 0.32 per cent.

The downturn follows President Donald Trump’s confirmation of imposing a 25 per cent tariff on Canada and Mexico, along with doubling levies on China to 20 per cent.

“If Trump tariff policy continues like this and soon starts impacting other countries, it will be bad for global trade and the global economy. India will not be spared,” cautioned Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

• Read also: Stock Market Live Updates 4 March 2025: Sensex declines 347.07 points to 72,738.87; Nifty falls 109.85 points to 22,009.45

Global markets reacted sharply to the tariff news, with the Dow Jones dropping 1.48 per cent, S&P 500 declining 1.76 per cent, and Nasdaq Composite falling 2.64 per cent. Asian markets followed suit, with Japanese indices down 1.5 per cent. The CBOE Volatility Index, often referred to as Wall Street’s “fear gauge,” surged to its highest level since December.

“The market is expected to open on a weak note due to sharp declines in the US and Asian markets, driven by concerns over a rising trade war,” noted market analysts. The SGX Nifty was down by 150 points (0.5 per cent) in pre-market trading, while US Index Futures showed a modest recovery, up by 0.5 per cent.

Despite the overall negative sentiment, select counters showed strength. Among top gainers, BEL led with a 2.76 per cent increase, followed by SBI at 2.60 per cent, IndusInd Bank at 1.41 per cent, Adani Enterprises at 0.89 per cent, and ICICI Bank at 0.70 per cent. Conversely, Nestle India was the biggest loser, down 2.71 per cent, followed by Bajaj Auto (-2.33 per cent), HCL Tech (-2.26 per cent), Titan (-1.98 per cent), and Tech Mahindra (-1.80 per cent).

Sector-wise, defense, realty, and metal indices gained over 1 per cent, while the capital market index declined more than 2 per cent. Power, rail, and defense stocks are expected to remain in focus during the day’s session. Oil marketing companies might benefit from the significant drop in crude oil prices, which fell to a three-month low of $71 per barrel.

“Crude oil prices extended losses and slipped to 12-week lows in the international markets. The U.S. trade tariff fear increased demand worries and pressurizing crude oil prices,” explained Rahul Kalantri, VP Commodities at Mehta Equities Ltd. He added that oil prices also fell after OPEC+ indicated plans to increase output from April.

In contrast, gold prices strengthened amid the geopolitical tensions. “Gold and silver prices posted very sharp gains on Monday, on fresh safe-haven demand due to elevated geopolitical tensions, and amid a big drop in the U.S. dollar index,” noted Kalantri. Gold steadied near $2,892 an ounce after a 1.2 per cent increase on Monday.

On the domestic front, the Nifty has now entered a key support area between 22,000 and 21,800. “Prices are currently hovering around the 89 WEMA, a significant long-term moving average that previously acted as a strong reversal point in September 2020, June 2022, and March 2023,” said Sameet Chavan, Head Research, Technical and Derivative at Angel One.

Technical analysts suggest that 22,000 will act as a crucial support level for the market. “For day traders, 22,000/72800 would act as a sacrosanct support zone. As long as the market is trading above this level, the pullback formation is likely to continue,” advised Shrikant Chouhan, Head Equity Research at Kotak Securities.

Foreign institutional investors (FIIs) continue to be net sellers in the Indian market, having sold over Rs 4,08,984 crore this fiscal year. “The weak global market, concerns over a global trade war, and continued foreign institutional investor selling may negatively impact the domestic market,” observed market experts.

The Indian rupee has also felt the pressure, slumping for five consecutive months in February as FPIs continue to offload their positions and demand for hedging grows among investors.

“Amid these concerns, we can expect Nifty to gather support between 22,080 and 21,950 and face resistance near 22,170 and 22,250 in the next intraday trading session,” predicted VLA Ambala, SEBI Registered Research Analyst and Co-Founder of Stock Market Today.

Market participants are advised to remain cautious during this volatile phase. “Until there is confirmation of a sustainable recovery, caution remains warranted, but the ongoing decline is gradually offering opportunities to accumulate quality stocks in a staggered manner from a short to medium-term perspective,” concluded Chavan.

Events to watch today include the Coforge Board meeting for stock split, the India-Australia semifinal match, and further developments on the global trade front as US tariffs on Mexico, Canada, and China take effect.