Mumbai, Feb 28 (IANS) The Indian stock market crashed on Friday on weak global cues, with the Sensex and Nifty falling over 1.26 per cent in the morning trade, as US President Donald Trump created a stir in the global markets with the announcement of trade tariffs.
Trump confirmed that new tariffs on imports from Mexico and Canada will take effect on March 4. Apart from this, the tariff on Chinese imports is also going to be doubled to 20 per cent.
On Truth Social platform, he said “this was a necessary response to reject illegal drugs entering the US from these countries”.
In the morning trade at around 9.58 am the Sensex tumbled nearly 1,004 points, or 1.35 per cent, to around 73,607.96, while the Nifty slipped 304 points, or 1.35 per cent, falling below the 22,250 mark.
Nifty Bank was down 302.50 points or 0.62 per cent at 48,441.30. The Nifty Midcap 100 index was trading at 48,127.15 after declining 1009.60 points or 2.05 per cent. Nifty Smallcap 100 index was at 14,838.20 after dropping 318.40 points or 2.10 per cent.
According to experts, the minimal changes in price suggest persistent bearish sentiment, prompting market participants to adopt a cautious approach.
“In terms of levels, the support level at 22500-22400 is critical for the Nifty50 index in the near future and requires close monitoring. Its ability to hold may determine whether a rebound is possible or if further declines are likely. On the flip side, the bearish gap of 22670-22720 remains a daunting task for the bulls, and a decisive breakthrough could only provide a short-term breather in the market sentiments,” said Sameet Chavan, Head Research, Technical and Derivative, Angel One.
Moving forward, one must remain vigilant with global developments, which are likely to act as catalysts in setting the initial tone for domestic markets. At the same time, one should refrain from making aggressive bets until momentum returns to the market, experts noted.