Markets opened lower on Thursday. The Sensex opened at 75,672.84 compared to its previous close of 75,939.18 and is currently trading at 75,648.95, down by 290.23 points or 0.38 per cent. Similarly, the Nifty opened at 22,821.10 against its previous close of 22,932.90 and is now at 22,871.05, losing 61.85 points or 0.27 per cent at 9.35 am.
President Trump’s proposal to impose 25 per cent tariffs on imports including automobiles, semiconductors, and pharmaceuticals, scheduled to begin April 2, weighed on market sentiment. Indian pharma stocks faced pressure as the sector is a major exporter to the US market.
“Trump’s declaration yesterday that the US will impose 25 per cent tariffs on automobiles, semiconductors and pharmaceuticals impacted India’s pharma stocks since India’s leading pharma companies are major exporters to the US,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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However, S&P’s assessment that US reciprocal tariffs would have limited impact on India provided some relief to investors. The market appeared to be in a consolidation phase, struggling to break above key resistance levels.
“The market is expected to open slightly lower due to a weak performance in Asian markets and a decline in US Index futures, following concerns raised in the US Federal Open Market Committee (FOMC) meeting minutes,” noted Vikas Jain, Head of Research at Reliance Securities.
Banking stocks led the decline with HDFC Bank dropping 1.58 per cent, while automotive companies also struggled with Maruti Suzuki falling 1.48 per cent and M&M down 1.05 per cent. FMCG heavyweight ITC declined 1.45 per cent.
Defence stocks bucked the trend, rebounding sharply after comments from Defence Secretary Rajesh Kumar Singh regarding increased defence allocation and potential relaxation of FDI policies. “This change in momentum follows recent profit booking that led to a correction in defence stock valuations,” observed VLA Ambala, Co-Founder of Stock Market Today.
Technical analysts indicated a cautious outlook. “Nifty formed a High Wave Doji candlestick pattern in the latest session, highlighting a sense of indecision among traders,” explained VLA Ambala. The technical support for Nifty was seen at 22,850 followed by 22,800 and 22,700, with resistance at 23,000, according to Hardik Matalia, Derivative Analyst at Choice Broking.
“We believe that the market is currently exhibiting non-directional activity; perhaps traders are waiting for a breakout in either direction,” said Shrikant Chouhan, Head Equity Research at Kotak Securities.
Gold traded at a fresh record high early Wednesday, with April delivery last seen at US$2,956.70 per ounce, up US$7.70, as safe-haven demand persisted amid US tariff threats.
Oil markets showed volatility with Brent crude gaining 1 per cent to $77/bbl on supply concerns from Russia and Kazakhstan, though WTI crude futures were down 0.40 per cent to $71.81 in early Thursday trading.
Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹1,881 crore on February 19, while Domestic Institutional Investors (DIIs) purchased equities worth ₹1,957 crore, highlighting their continued confidence in the market.
“Beaten down midcaps like defence stocks are witnessing some buying,” added Dr. Vijayakumar, suggesting selective opportunities amid the broader consolidation. A positive development was the RBI indicating growth recovery in the second half of FY25, which “bodes well for growth and earnings recovery in FY26.”