February 28th 2025.
Mumbai saw a significant decline in the Indian stock market on Friday, due to weak global cues. Both the Sensex and Nifty experienced a drop of over 1.26 per cent in the morning trade. This was largely influenced by US President Donald Trump's announcement of trade tariffs, which caused a stir in the global markets.
Trump confirmed that the new tariffs on imports from Mexico and Canada will come into effect on March 4th. Additionally, tariffs on Chinese imports are set to double to 20 per cent. On the Truth Social platform, Trump stated that this decision was necessary in order to combat the influx of illegal drugs into the United States from these countries.
At around 9:58 am, the Sensex saw a sharp decline of 1,004 points, while the Nifty slipped by 304 points, falling below the 22,250 mark. The Nifty Bank also experienced a drop of 302.50 points, while the Nifty Midcap 100 and Nifty Smallcap 100 indexes saw declines of 1,009.60 points and 318.40 points respectively.
Experts believe that the minimal changes in price indicate a persistent bearish sentiment in the market, causing market participants to adopt a cautious approach. They also suggest that the support level at 22,500-22,400 for the Nifty50 index is crucial and should be closely monitored in the near future. Whether a rebound is possible or further declines are likely will depend on its ability to hold this support level. On the other hand, the bearish gap of 22,670-22,720 remains a challenging obstacle for the bulls, and a decisive breakthrough may only provide a short-term breather in the market sentiments.
Looking ahead, experts advise to keep a close eye on global developments, as they are likely to act as catalysts in setting the initial tone for the domestic market. It is also recommended to refrain from making aggressive bets until momentum returns to the market.
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