Stock Market Today: Sensex, Nifty Close Almost Flat; Auto Stock Drag

Market sentiment remained cautious due to renewed uncertainty over tariffs, as US President Donald Trump suggested delaying steep import duties on Mexico and Canada until April 2

The broader market lagged behind the benchmarks, with the BSE Midcap index falling 1 per cent and the BSE Smallcap index dropping over 2 per cent

Source : ABPLIVE AI

Indian equity benchmarks, the Sensex and Nifty, closed mostly flat on Thursday, after trading near the breakeven point throughout the session. Weakness in auto stocks offset gains in financials, which rose following the Reserve Bank of India’s partial reversal of stricter lending rules for small borrowers and non-bank lenders. 

Market sentiment remained cautious due to renewed uncertainty over tariffs, as US President Donald Trump suggested delaying steep import duties on Mexico and Canada until April 2, while also proposing a 25 per cent reciprocal tariff on European cars and other goods.

By the close of trading, the BSE Sensex dropped 37 points to 74,564, while the Nifty fell 38 points, or 0.2 per cent, to 22,509. On the NSE, 477 stocks advanced, while 2,146 stocks declined. Indian equities have been facing pressure for several months, with the Nifty 50 set for its fifth consecutive month of losses—the longest losing streak since 1996. Both indices have dropped nearly 14 per cent from their all-time highs in September 2024.

Foreign investors have continued to withdraw from Indian equities, selling shares worth Rs 46,792 crore in February so far. In contrast, domestic institutional investors (DIIs) have countered this trend with net purchases amounting to Rs 50,817 crore.

Broader Market

The broader market lagged behind the benchmarks, with the BSE Midcap index falling 1 per cent and the BSE Smallcap index dropping over 2 per cent.

Sectorial Update

Among sectoral indices, Nifty Auto, Nifty PSU Bank, Nifty Realty, and Nifty Media were the hardest hit, each falling by 1-4 per cent. The auto index lost 1.5 per cent after two days of gains, weighed down by declines of 2 per cent each in Mahindra and Mahindra and Tata Motors.

Meanwhile, the Nifty Bank gained 0.3 per cent after the RBI relaxed tighter lending rules for small borrowers and non-bank lenders. Brokerages view this as a positive development for large private banks like HDFC Bank, Bandhan Bank, and IndusInd Bank, as well as state-owned lenders and NBFCs, as it could stimulate credit flow and lower funding costs.