Synopsis
On February 28, the Indian stock market experienced a dramatic decline, with the Sensex and Nifty plunging over 1.26%. This downturn was triggered by US President Trump's announcement of new trade tariffs, which raised concerns among investors.Key Takeaways
- The Indian stock market faced a significant drop on February 28.
- Sensex fell by over 1,000 points, while Nifty dropped below 22,250.
- Trump announced new tariffs on imports from Mexico, Canada, and China.
- Experts warn of a bearish sentiment affecting market dynamics.
- Investors are advised to exercise caution amid ongoing global developments.
Mumbai, Feb 28 (NationPress) The Indian stock market witnessed a significant decline on Friday, driven by unfavorable global indicators, with the Sensex and Nifty plummeting over 1.26 percent during the morning session, following US President Donald Trump's announcement regarding trade tariffs.
Trump disclosed that new tariffs on imports from Mexico and Canada will be implemented starting March 4. Additionally, tariffs on imports from China are set to be increased to 20 percent.
On the Truth Social platform, he stated, "this was a necessary reaction to counter illegal drugs entering the US from these nations."
During the morning trading session at approximately 9:58 am, the Sensex fell by nearly 1,004 points, or 1.35 percent, reaching around 73,607.96, while the Nifty dropped 304 points, also 1.35 percent, slipping below the 22,250 threshold.
The Nifty Bank index declined 302.50 points or 0.62 percent, settling at 48,441.30. The Nifty Midcap 100 index traded at 48,127.15 after a decrease of 1,009.60 points or 2.05 percent. Meanwhile, the Nifty Smallcap 100 index stood at 14,838.20 after a loss of 318.40 points or 2.10 percent.
Experts suggest that the marginal fluctuations in prices indicate a continued bearish sentiment, leading market participants to take a cautious stance.
"In terms of levels, the support level at 22,500-22,400 is vital for the Nifty50 index in the near term and needs close observation. Its ability to maintain this level may determine whether a recovery is feasible or if further declines are imminent. Conversely, the bearish gap between 22,670-22,720 poses a significant challenge for bullish traders, and a decisive breakthrough could merely offer a temporary respite in market sentiments," stated Sameet Chavan, Head of Research, Technical and Derivative at Angel One.
Looking ahead, it is essential to stay alert to global developments, which are expected to influence the initial direction of domestic markets. Simultaneously, experts advise against making aggressive investments until the market regains momentum.
