The benchmark BSE Sensex lost 7.51 points or 0.01% to close at 74,332.58, while the broader Nifty 50 index closed at 22,552.50, higher by 7.80 points or 0.03%.
The market capitalization of all listed companies on the BSE decreased by Rs 697 crore to Rs 398.26 lakh crore.
Sector Watch
The IT index closed 0.9% lower, as technology companies derive a significant portion of their revenue from the U.S. Shares of tech heavyweights Infosys and HCL Technologies declined more than 1.6%.
Reliance Industries, the second-largest stock on the benchmark indices, surged 3%, emerging as the top gainer on both indices.
The auto index pared earlier gains to end 0.1% higher. CLSA noted that a potential elimination of import duties on U.S. cars would have little impact on Indian passenger car manufacturers.Among individual stocks, Bharat Electronics rose 1.5% after securing orders worth Rs 577 crore, while Gensol Engineering extended its losing streak for the eighth consecutive session, slipping 2.5% following multiple credit rating downgrades by CARE and ICRA.The Nifty Realty index declined 1.2%, with shares of Godrej Properties, Lodha, Prestige Estates, and Raymond dropping between 2% and 3%.
Over the past two sessions, the Nifty 50 and BSE Sensex had gained nearly 2% each, buoyed by optimism over a possible relaxation of U.S. tariffs on Canada and Mexico, a decline in oil prices, and bargain-hunting after recent market weakness.
After Indian market hours on Thursday, U.S. President Donald Trump announced the suspension of 25% tariffs on most goods from Mexico and Canada, adding another twist to an already volatile trade policy that has unsettled global financial markets.
Meanwhile, investors remain cautious ahead of key U.S. jobs data and Federal Reserve Chair Jerome Powell’s speech.
Expert View
The global market is experiencing a heightened uncertainty due to U.S. tariff impositions and counter threats from its peers and this ambiguity has led to increased risk aversion and diminished appeal of equities, said Vinod Nair, Head of Research at Geojit Financial Services, adding that EMs have been particularly affected, experiencing significant outflows.
“Lately, the S&P 500 index is showing signs of a deeper correction, reflecting concerns about the potential impact of tariffs on the US economy. In contrast, Indian markets have demonstrated resilience off late despite looming trade war. While a recovery in corporate earnings could significantly improve the domestic sentiments. Investors could go overweight on large caps given stability in earnings and increasing valuation comfort,” Nair said.
Global Markets
Stocks in Europe and Asia declined on Friday as investors remained on edge following a week of uncertainty over U.S. trade policy and rising global borrowing costs. However, a sharp selloff in bonds showed signs of easing.
European markets fell 0.9% on Friday, set for a weekly loss after ten consecutive weeks of gains. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.6%, while Japan’s Nikkei hit a six-month low.
Investor focus remained on the upcoming U.S. non-farm payrolls report and a speech by Federal Reserve Chair Jerome Powell, both expected later in the day, which could offer insights into the future path of interest rates in the world’s largest economy.
On Thursday, the European Central Bank cut interest rates once again but warned of “phenomenal uncertainty,” citing potential inflationary risks from trade tensions and increased defense spending.
Meanwhile, risk-sensitive bitcoin edged slightly lower to $88,439. In a notable development, former U.S. President Donald Trump signed an executive order on Thursday to establish a strategic bitcoin reserve, utilizing tokens already owned by the U.S. government, which were seized through criminal and civil asset forfeitures.
Currency Watch
The Indian rupee strengthened on Friday, recording its best weekly gain in over two years as the U.S. dollar weakened sharply against major global currencies, boosting regional counterparts as well. The rupee closed at 86.8725 per dollar, rising nearly 0.3% for the day and 0.7% for the week—its strongest performance since February 2023—while the dollar headed for its worst week in over two years.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, declined 0.43% to 103.58, hovering near its lowest level since November 5, 2024.
Crude Impact
Oil prices edged higher on Friday but were on track for their largest weekly decline since October, as uncertainty surrounding U.S. tariff policy fueled concerns over demand growth just as major producers prepared to ramp up output.
By 07:46 GMT, Brent crude futures climbed 50 cents, or 0.72%, to $69.96 per barrel.
FII/DII Tracker
Foreign institutional investors (FIIs) continued their selling spree on March 6, offloading equities worth Rs 2,377 crore. In contrast, domestic institutional investors (DIIs) stepped in as net buyers, purchasing equities worth Rs 1,617 crore on the same day.
