Sensex Declines 70 Points, Nifty at 23,400; Tata Motors Falls 5% Amid Tariff Concerns

The Indian stock market exhibited volatility on Thursday, with both benchmark indices trading in the red amid profit-booking and concerns over potential U.S. tariff impositions. The BSE Sensex was down 68.54 points (0.09 per cent) at 77,219.96, while the NSE Nifty 50 declined 32.55 points (0.14 per cent) to 23,454.30. This decline follows a weak closing on Wednesday, where the Nifty 50 fell 0.77 per cent to 23,486.85, and the Sensex dropped 0.93 per cent to 77,288.50, snapping a seven-session winning streak.

The downturn was primarily driven by profit-booking in key banking and financial stocks. HDFC Bank and Reliance Industries, two of the largest contributors to the indices, faced selling pressure, dragging the overall market sentiment lower. Additionally, auto stocks were under pressure, with Tata Motors witnessing a sharp 5% decline following concerns over demand trends.

Broader market indices also reflected the cautious sentiment. The Nifty Midcap 100 and Nifty Smallcap 100 witnessed mild losses, with investors shifting towards defensive sectors. Meanwhile, IT stocks outperformed slightly, with selective buying seen in Infosys and TCS amid global cues.

Investor sentiment was affected by growing concerns over potential U.S. tariffs on certain industries, which could impact global trade flows. Moreover, as the March derivatives contract expiry approaches, traders opted to book profits, leading to a short-term pullback in the markets.

Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, noted that the Nifty is nearing a key support zone around the 23,400 mark, which coincides with its major moving averages. A sustained hold above this level could trigger the next leg of the uptrend, while failure to maintain support may extend the consolidation phase. Despite these short-term headwinds, he maintains a positive outlook and advises investors to adopt a stock-specific approach, focusing on companies exhibiting relative strength.

Technical analysts indicate that if the Nifty holds the 23,400 level firmly, it may witness a rebound, potentially testing the 23,600–23,700 range in the near term. Conversely, a breakdown below this support could lead to further downside, with the next support level seen near 23,200.