Mumbai, March 7 – The Indian stock market ended on a flat note on Friday as investors remained cautious due to uncertainties surrounding a potential global trade war. Volatility persisted throughout the trading session as major indices showed little movement, with mixed trends among key sectors.
As per agency reports, analysts noted that selling pressure in global markets and continued foreign institutional investor (FII) outflows from domestic equities impacted market sentiment. Investors refrained from taking major risks amid concerns over trade tariffs imposed by the United States and potential retaliatory measures from other countries.
The 30-share BSE Sensex ended marginally lower after a two-day winning streak, slipping 7.51 points to close at 74,332.58. The index had surged 246.34 points earlier in the session, touching an intraday high of 74,586.43. Meanwhile, the NSE Nifty managed to gain 7.80 points, settling at 22,552.50, after reaching an intraday high of 22,633.80.
Vinod Nair, Head of Research at Geojit Financial Services, stated that the rising global uncertainty due to US-imposed tariffs and retaliatory warnings from other economies had led to increased risk aversion among investors, reducing the appeal of equities. However, he pointed out that despite these global concerns, the Indian market has displayed resilience.
Among the top gainers on the Sensex were Zomato, IndusInd Bank, NTPC, Infosys, HCL Technologies, Titan, Power Grid, Hindustan Unilever, Tech Mahindra, and ITC. On the other hand, shares of Reliance Industries, Nestlé India, Tata Motors, Adani Ports, Tata Steel, UltraTech Cement, and Kotak Mahindra Bank ended in the red.
The broader market also showed divergence, with the BSE SmallCap index rising 0.75 percent while the MidCap index slipped 0.30 percent. Of the total 2,512 stocks listed on the BSE, 1,468 declined, 2,512 advanced, and 134 remained unchanged.
Devash Vakeel, Head of Research at HDFC Securities, mentioned that investor sentiment remained cautious due to concerns about the repercussions of US trade policies. Global financial markets are still assessing the potential fallout of escalating trade tensions, contributing to the uncertainty.
Despite Friday’s muted performance, the Sensex recorded a weekly gain of 1,134.48 points, or 1.55 percent, while the Nifty added 427.8 points, or 1.93 percent, over the week.
Elsewhere in Asia, major markets ended lower, with Japan’s Nikkei, China’s Shanghai Composite, Hong Kong’s Hang Seng, and South Korea’s Kospi all closing in the red. European markets were also trading lower in early sessions, following a weak performance in US markets on Thursday.
On the institutional front, foreign institutional investors (FIIs) offloaded ₹2,377.32 crore worth of Indian equities on Thursday, while domestic institutional investors (DIIs) made net purchases of ₹1,617.80 crore.
Meanwhile, Brent crude oil prices rose by 1.32 percent to $70.38 per barrel, adding to inflationary concerns in global markets.
The BSE Sensex had surged by 609.86 points to close at 74,340.09 on Thursday, while the NSE Nifty had climbed 207.40 points to 22,544.70.
