Continued foreign selling to the tune of record $13bn so far in 2025
Satish Chandra Aluri,
Lemonn Markets Desk
Mumbai, March 4, 2025: Benchmark indices ended lower on Tuesday for record 10th straight loss session on weak global cues. Broader Mid and Small caps ended mixed with Small cap index posting gains.
Markets opened sharply lower amid escalating global trade tensions after U.S. President Donald Trump confirmed his proposed tariffs of 25% on imports of Mexico and Canada to take effect with tariff on Chinese imports doubling to 20%. Selling pressure persisted as Nifty struggled to hold 22000 level with continued foreign selling to the tune of record $13bn so far in 2025. On the margin, overnight decision to go ahead with tariffs indicate there is more pain ahead for markets as reciprocal tariffs on India will be expected in April. Sectors exposed to US like Pharma and IT along with Auto are the worst hit on global trade tensions while domestic focused banks and financials fared better.
Technically, Nifty 50 is oscillating around the key 22000 level which remains a key support. Markets continued to be buffeted by a range of global factors while domestic sentiment remains weak. Bank Nifty posted gains with key support remaining around 48000 levels.
According to Shrikant Chouhan, Head Equity Research, Kotak Securities, today, the market recovered from the lower levels, however, this recovery was not encouraging, which could have soured the sentiment if there was no support from the global markets. However, if we consider the broad structure of the market then the indices are trading near the key support zones 22000/72800 and 21800/72300. If the market recovers sharply after touching the lows of 21800/72300, then we may see a strong reversal of the recent sell-off seen from the highs of 23800/82300. A close below 21800/72300 will be negative for the market as in that case the chances of touching 21500/71500 would become bright.
The strategy should be to buy selective stocks at current levels and buy more on dips with a medium-term outlook. Resistance will be at 22200/73400 and 22500/74300.
