Stock Market Today: Vijaya Diagnostic Surges 13.01% to ₹1,054

On March 4, 2025, the Indian stock market experienced notable fluctuations, influenced by global economic developments and domestic factors. Key indices such as the BSE Sensex and NSE Nifty50 opened in the red, reflecting investor concerns over new U.S. tariffs and their potential impact on global trade.

Market Overview

The BSE Sensex opened over 350 points down, falling below the 72,800 mark, while the Nifty50 slipped below 22,000. Specifically, at 9:17 AM, the BSE Sensex was trading at 72,707.94, down 378 points or 0.52%, and the Nifty50 was at 21,973.25, down 146 points or 0.66%.

This decline marked the tenth consecutive session of losses for the Nifty50, positioning it for its longest daily losing streak since its inception three decades ago. The index has fallen about 4% over these ten sessions and 16% from its peak in September 2024.

Contributing Factors

Several factors have contributed to the recent downturn in the Indian stock market:

U.S. Tariffs: The announcement by U.S. President Donald Trump of 25% tariffs on imports from Canada and Mexico, along with a cumulative 20% tariff on Chinese goods, has escalated trade tensions. These tariffs went into effect on March 4, 2025, at 10:31 AM IST, raising concerns about global economic growth and inflation.

Foreign Investor Outflows: Since September 2024, foreign investors have sold Indian equities worth approximately $25 billion, with $4.1 billion withdrawn in February alone. This persistent outflow has exerted additional pressure on the markets.

Weak Earnings and Economic Indicators: Subdued corporate earnings and mixed economic data have further dampened investor sentiment, leading to cautious trading.

Sectoral Performance

The impact of these factors has been uneven across different sectors:

Information Technology (IT): Export-focused IT companies, which derive a substantial portion of their revenue from the U.S., fell by 1%. Major players like Infosys and Tech Mahindra each saw declines of about 2%.

Pharmaceuticals: The pharmaceutical sector also faced losses, influenced by concerns over global trade policies and potential disruptions in supply chains.

Automobiles: The auto sector experienced declines due to fears of increased costs from tariffs and potential slowdowns in consumer demand.

Individual Stock Performances

Despite the overall bearish trend, certain stocks showed resilience or notable movements:

ASK Automotive: The company's shares rose by the maximum-allowed 5% following the announcement of a partnership with Japan's Kyushu Yanagawa Seiki to manufacture high-pressure diecast alloy wheels for two-wheelers.

NTPC Ltd.: Shares of NTPC Ltd. climbed by 1.14% to 314.50 Indian rupees, outperforming competitors despite the generally weak market performance.

ITC Ltd.: ITC's shares saw a slight increase of 0.72% to 397.55 Indian rupees, even as the broader market faced declines.

Impact on Major Investors

The market downturn has significantly affected major institutional investors:

Life Insurance Corporation of India (LIC): LIC, the country's largest domestic institutional investor, experienced a substantial decline of Rs 1.45 lakh crore in its equity portfolio value within the first two months of 2025. The portfolio's value decreased from Rs 14.9 lakh crore in December 2024 to Rs 13.4 lakh crore by the end of February, marking one of the most significant mark-to-market losses in its recent history.

Market Outlook

Analysts suggest that the Indian stock market may continue to face challenges in the near term due to ongoing global economic uncertainties, particularly related to trade policies and foreign investment flows.

Investors are advised to remain cautious and monitor developments closely, as the market seeks to find stability amid these headwinds.

In conclusion, the Indian stock market on March 4, 2025, reflected the complexities of a globalized economy, where international policy decisions and investor sentiments interplay to influence domestic financial markets.