Indian markets open flat as concerns over tariff uncertainty continue

About 1786 stocks are advancing as against 745 stocks that are declining, thus indicating a positive sentiment in the broader market.

Market Update at 10:00 AM: Indian benchmarks opened little changed on Friday after two sessions of gains, while other Asian stocks fell as U.S. tariff uncertainty continued to weigh on investor sentiment.

At 09:52 AM, Sensex was down 218 points, or 0.29 per cent, at the 74,122 level, while Nifty also dropped by 3 points, 0.01 per cent. On the broader level, Nifty Mid-Cap traded higher by 50 points or 0.10 per cent, while Nifty Small-Cap extended yesterday’s gains, surging by 80 points or 0.52 per cent.

The blue chips rose about 2 per cent each over the last two sessions on hopes of some reprieve in U.S. tariffs on Canada and Mexico, a drop in oil prices and bargain hunting after a recent fall.

On Thursday, U.S. President Donald Trump suspended the 25 per cent tariffs on most goods from Mexico and Canada, marking another twist in a fluctuating trade policy that has whipsawed the global financial markets.

Uncertainty will prevail until clarity emerges on reciprocal tariffs, which will directly impact India.

In Friday’s trade India VIX has dropped to 13.65, down by 1.2 per cent, indicating a slight decrease in market volatility.

Nifty Metal, Nifty Media and Nifty Auto are among the Top Gainers while Nifty IT, Nifty Bank and Nifty FMCG are among the Top Losers.

BEL, Bajaj Auto and HDFC Life are among the top gainers while Indusind Bank, Infosys and NTPC are among the top losing stocks from the Nifty 50.

About 1786 stocks are advancing as against 745 stocks that are declining, thus indicating a positive sentiment in the broader market.

Pre-Market Update at 7:45 AM: The GIFT Nifty suggests a muted start for Indian benchmark indices, showing a loss of 30 points on 7.20 am. GIFT Nifty futures trades at 22,555 points with support of 22,500 level.

The US stock market ended lower on Thursday amid the uncertainty surrounding the US trade policy. The Dow Jones Industrial Average declined 427.51 points, or 0.99 per cent, to 42,579.08, while the S&P 500 dropped 104.11 points, or 1.78 per cent, to 5,738.52. The Nasdaq Composite closed 483.48 points, or 2.61 per cent, lower at 18,069.26.

US President Donald Trump announced that goods from Canada and Mexico, covered by the US-Mexico-Canada trade agreement (USMCA), will be exempted for a month from the 25 per cent tariffs imposed earlier this week. Trump had earlier only mentioned an exemption for Mexico, but later signed an amendment to his order that now covers Canada as well.

The US trade deficit widened to a record high in January due to increased imports ahead of tariffs. The trade gap surged 34.0 per cent to USD 131.4 billion from a revised USD 98.1 billion in December, marking the largest percentage jump since March 2015. Imports rose 10.0 per cent to USD 401.2 billion, while exports increased 1.2 per cent to USD 269.8 billion. Economists had expected the deficit to reach USD 127.4 billion.

Initial jobless claims in the US fell more than expected last week. New filings for state unemployment benefits dropped by 21,000 to a seasonally adjusted 221,000 for the week ended March 1. Economists had predicted 235,000 claims.

The European Central Bank cut interest rates as expected, reducing its deposit rate by 25 basis points to 2.5 per cent. This marks the sixth rate cut since June, reflecting concerns over slowing inflation and weak economic growth.

In the Asian markets Japan’s Nikkei 225 traded slightly higher by 0.1 per cent, and the Topix dropped 0.98 per cent, while 10-year JGB yields rose to 1.525 per cent, hitting a 16-year high. South Korea’s Kospi declined 0.41 per cent, and the Kosdaq lost 0.05 per cent. Hong Kong’s Hang Seng index futures signaled a weaker open.

Crude oil prices headed for their largest weekly drop since October. US WTI crude futures fell 0.33 per cent to USD 66.14 per barrel, down 5 per cent for the week, while Brent crude declined 0.17 per cent to USD 69.34.

The Dollar index in futures showed a 0.04 per cent decrease, reaching 104.11, while the value of one dollar dropped to Rs 86.89.

On March 06, 2025, foreign institutional investors (FII) sold shares worth Rs 2,377.32 crore, while domestic institutional investors (DII) bought shares worth Rs 1,617.80 crore.

Stocks that are banned for trading in the F&O segment on March 07, 2025, are Manappuram Finance only.