The Bombay Stock Exchange encountered fluctuating trends as global markets turned stagnant after an initial surge. The BSE Sensex and Nifty indices rose at the beginning of the trading session, with the Sensex climbing by 0.39% to 74,392.15 points and the Nifty by 0.35% to 22,577.40 points. However, both indices experienced significant volatility throughout the day, oscillating between highs and lows.

Notable underperformers in the Sensex included companies like Infosys, HCL Technologies, Tata Consultancy Services, Axis Bank, Tech Mahindra, Nestle India, Asian Paints, Zomato, Bajaj Finance, and Hindustan Unilever. Conversely, IndusInd Bank, Tata Motors, Kotak Mahindra Bank, Adani Ports, HDFC Bank, Mahindra & Mahindra, NTPC, and Sun Pharma were among the gainers.

The global market sentiment was largely negative due to uncertainties surrounding trade tariffs, with concerns escalating over the potential impact of reciprocal tariffs set to take effect in early April. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, expressed pessimism about a sustained recovery in global markets, suggesting a looming downtrend. Despite this, the Indian stock market exhibited resilience in the face of global turmoil.

Market analysts advised caution among investors, awaiting crucial macroeconomic data releases in both India and the US later in the day. While Tokyo and Seoul markets showed positive trends, Shanghai and Hong Kong remained in the negative territory. Wall Street also closed lower on the previous trading day, reflecting the heightened volatility in global markets.

The resurgence of President Donald Trump and his administration’s unpredictable trade policies have contributed to market jitters, with US stocks experiencing their worst performance at the start of a presidential term since 2009. The uncertainty surrounding trade policies and recession fears in the US has led to panic selling, further exacerbated by significant net sales by Foreign Institutional Investors (FIIs) this fiscal year.

The escalation of trade tensions was evident when President Trump initially announced a potential increase in tariffs on steel and aluminum imports, particularly from Canada, only to later suggest a reconsideration of the additional hike. Additionally, the rise in global oil prices, with Brent Crude reaching USD 70.01 per barrel, added to market uncertainties.

On the investment front, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,823.76 crore, while Domestic Institutional Investors (DIIs) purchased equities worth Rs 2,001.79 crore on the previous trading day. The BSE Sensex closed marginally lower at 74,102.32 points, while the Nifty ended slightly higher at 22,497.90 points.

The market scenario underscores the delicate balance between global economic uncertainties and domestic resilience, as investors navigate through turbulent waters in the financial landscape.