Sensex, Nifty Open Higher on March 3, But Slip Into Red Later

Kolkata: The Indian stock market witnessed early gains on Monday, March 3, but quickly lost momentum, with both Sensex and Nifty slipping into the red shortly after opening.

Market Performance at 10:30 AM:

Nifty 50: 22,054.45 (-70.25 points or -0.32%)
Sensex: 72,951.66 (-246.45 points or -0.34%)

Market Opening at 9:20 AM:

Sensex: 73,568.46 (+370.36 points or +0.51%)
Nifty 50: 22,238.30 (+113.60 points or +0.51%)

This comes after a major sell-off on Friday, February 28, where Sensex plunged 1,414.33 points (-1.90%) to 73,198.10 and Nifty dropped 420.35 points (-1.86%) to 22,124.70.

Why Is the Market Struggling?

Foreign Institutional Investors (FIIs) Selling:

FIIs pulled out ₹34,574 crore in February, pushing total outflows in 2025 to ₹1.12 lakh crore.
January outflows: ₹78,027 crore.
Sensex has fallen over 6% year-to-date (till February 28) due to persistent FII sell-off.

Rupee Weakening Against the US Dollar:

A consistently declining rupee has increased market pressure.

Fear Over Trump’s Trade Policies:

Investors are apprehensive about potential US tariffs under President Donald Trump, which could negatively impact Indian exports and businesses.
Indian markets have now been in a losing streak for five consecutive months, the longest in 29 years.

Global Market Update: Asian Markets Rally

Unlike India, Asian indices started the week strong, boosted by Chinese factory data:

Hong Kong's Hang Seng Index: +1.2% (23,222.88)
Shanghai Composite Index: +0.3% (3,332.27)
Japan’s Nikkei 225: +1.4%
Taiwan’s Taiex: -1.4%
Thailand’s SET Index: -0.7%

Meanwhile, Hong Kong-listed Mixue Bingcheng (a bubble tea chain) saw a massive 40% surge in stock price.

US Market Recap: Wall Street Closes Strong on Friday

S&P 500: +1.6%
Dow Jones: +1.4%
Nasdaq Composite: +1.6%
Nvidia Stock: +4% (recovering from an 8.5% dip on Feb 27)

Crude Oil Prices:
- US Benchmark Crude: $70.18/barrel (+$0.42)
- Brent Crude: $73.24/barrel (+$0.43)

Wall Street analysts believe Trump’s tariff threats are a negotiation strategy and may not fully materialize.

Market Outlook: What’s Next?

Market analysts predict Indian equities will remain volatile, driven by:
US tariff-related developments
Foreign Institutional Investors (FIIs) trading patterns
Global economic trends

If FIIs continue their pullout and tariff concerns persist, volatility is likely to continue.